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No Central aid for Vizhinjam project


Posted on 12 Oct 2011
Mumbai: The state's hope for central aid for the Vizhinjam port project were dashed with the Central Shipping Secretary stating that Vizhinjam cannot be developed as a major port.

The state government had recently written a letter to the Shipping and Ports Ministry seeking investment for converting Vizhinjam into a ‘major port.’

At the moment there is no option to provide Central assistance for a project, which is fully owned by a state, he clarified.

The Shipping Ministry had earlier sent letters to coastal states enquring about the possibility of constructing a port and a ship building unit.

Investment by the Centre in a major port is possible only if it is allowed to hold at least 51 per cent equity.

Another other condition by the Centre is that 4000 acres of land should be made available if a new port and ship building unit is to be sanctioned.