The Hindu Business Line : Denial of ST exemption to CPT project draws flak

Protest is brewing over the decision of the State Government to turn down the request of the Cochin Port Trust to provide sales tax exemption to the bunkering terminal project of the port.

The trade and industry here has taken up the issue with the State Government, saying the project deserves complete sales tax exemption in view of its potential to generate employment opportunities as well as bringing in foreign exchange.

Various Chambers of Commerce in Kerala are of the view that this is an ambitious project, which if materialised, will give an international exposure to the port.

Attractiveness

Mr John K. Paul, President of the Kerala Chamber of Commerce and Industry, said that the terminal would be attractive only if the State Government gives some concessions to its activities. This bunkering terminal can be given tax exemption similar to that of aviation turbine fuel, he said.

Considering the tremendous potential of the terminal project for the growth of the State economy and the overall development of the region, he urged the State Government to take initiative to grant tax exemption to services of bunkering terminal.

Mr Balagopala B. Pai, President of the Indian Chamber of Commerce and Industry, said that the concept of an international container terminal calls for a bunkering terminal also as the provision of such a facility in the international maritime route will indeed add to the viability of the Vallarpadam Project besides bringing in foreign exchange.

Activities

The activities offered in the terminal such as supply of provisions and fresh water to ships, ship repair, transportation will definitely generate more employment opportunities in the State, he said.

The Cochin Chamber of Commerce and Industry President, Mr N. Sreekumar, urged the Central and State Governments to take a special interest and consider favourably the request of the port in granting exemption and make this dream project come true.

Global sea route

Meanwhile, sources in the port said that the non co-operative attitude of the regulatory agencies in giving various exemption to the project would affect the prospect of Kochi, which is the most suitable port to commence the bunkering terminal because of its close proximity to international sea route.

Unless these regulatory mechanisms of inspection become proactive and necessary concessions are given, these types of lucrative enterprise will never take root on Indian shores. Kochi will lose an opportunity to develop itself as an international bunkering port along with the prestigious international container transhipment terminal.

With the deepening of the port channel to 12.5 metres, it is all the more necessary to diversify the areas, which will add synergy to utilisation of developing infrastructure, the sources added.