Privatization

Private Sector Participation

In keeping with general policy of liberalization and globalization of economy initiated by the Government of India, since the early nineties of last century, the Port sector has been thrown open to private sector participation. In order to handle increased volume of sea-borne traffic on account of increase in foreign and coastal trade, major expansion has been planned in the port infrastructure sector in the country , entailing upon mobilization of substantial resources.

Accordingly, in 1996-97 the Central Govt. has issued comprehensive guidelines for private sector participation in the arena of port development which has set forth the much needed pace for flow of private investments in development /expansion of major port projects . These were followed by further guidelines issued in 1998, 2000, 2003 and 2005.

Recently, in 2008, comprehensive guidelines for Formulation, Appraisal and Approval of Public Private Partnership (PPP) Projects with standardised documents for  Request For Qualification (RFQ), Request For Proposal (RFP) and Model Concession Agreement (MCA) have been finalised at the Ministerial level.

Major Projects of Privatisation at Kolkata Port

Haldia Dock Complex

• Berth No. 12 (at HDC of Kolkata Port) was allotted on 30.1.2002 to a Private Operator viz. m/s Tata Martrade International Logistic Ltd (TMILL), (a Joint Venture of M/s. Tata Steel and a holding Co. of Company) for a period of 30 years for its operation, management and maintenance. About Rs. 25.8 crore has been invested in the project by the private operator. Cargo handling at the berth commenced from March, 2002 and the berth has been equipped with mobile harbour cranes, forklifts, etc. in March, 2004.
• Berth No. 4A (at HDC of Kolkata Port) was allotted on 14.5.2002 (on BOT basis) to a joint Venture Company viz. International Sea Ports India Pvt. Ltd. for its construction, operation, management and maintenance for a period of 30 years. The total project cost was Rs.150 crore. The berth was commissioned in February 2004.
• LOI was issued to a private operator on 29.4.2009, for providing integrated cargo handling services in each of the two berths 2 & 8 at Haldia Dock Complex with a projected annual throughput of 4 million tonnes for a period of 10 years,  including mechanisation of the berths with installation of 6 Mobile Harbour Cranes alongwith dumpers, pay loaders, etc. at an investment  of around Rs. 140 crore.  However, in September, 2012 the contract was illegally abandoned by the concerned operator following which fresh tendering process has been initiated.  
• LoI was issued on 27.12.2012 for Supply, operation and maintenance of 2 MHCs at Berth No. 4B at HDC on contract basis for handling Dry Bulk cargo with projected investment of around Rs. 60 Crores with 3 MTPA.
• LOI was issued for Setting up of  Captive Barge facilities by Renuka Sugar for their cargo manufacturing unit at HDC for handling imported raw sugar (capacity of 0.8 million tonnes and projected investment Rs. 98 crore). Work order awarded in the last quarter of 2012-13.

Kolkata Dock System

• LOI was issued on 30.11.2012 for Mechanization of Berth No. 5 NSD of KDS, planned through hiring/ installation of 2 Mobile Harbour Cranes  (annual capacity : 2.50 MTPA, projected investment of Rs.141.5 crore), to be undertaken through Own-Operate-Maintain (OOM) basis for 10 year period.