The union cabinet Thursday approved extension of financial assistance to Kolkata Port Trust (KoPT) to meet the dredging expenditure incurred for maintaining the river channel.
"This will make transactions commercially viable for the port users," an official release said here.
The scheme of financial assistance to KoPT towards dredging will be continued for a total amount of Rs.1,501.35 crore for the period from 2012-13 to 2015-16, with effect from April 1, 2012," it added.
An on-account payment up to 90 percent of the amount payable towards financial assistance during the previous year may be made to KoPT in the following years in equal quarterly installments, the statement said.