The cash-strapped Cochin Port Trust is planning to approach the Union Government with a request to write off arrears amounting to Rs 1,250 crore, which it had availed from the Centre for carrying out various infrastructure development activities.
“The amount includes the principal of around Rs 250 crore and accumulated interests and penal interests of various government loans that have been availed until 2010. Though the loan amount was utilised for various infrastructure development projects, the Port management could not accrue enough revenue from it,” said P M Mohammed Haneef, chairman, the Joint Forum of Trade Unions and a member of the board of trustees.
“Therefore, it has been decided that a request be placed before the Union Government to write off the arrears,” added Mohammed Haneef.
In a memorandum submitted to the Parliament Standing Committee on Transport, Tourism and Culture, trade union leaders have sought initiatives that would expedite the implementation of a proposal for financially restructuring the Cochin Port and writing off the arrears.
“The management has informed that requests for availing short-term loans or overdrafts have not be given the green signal by various nationalised banks, primarily because the repaying capacity of the Port Trust has not been deemed strong. The reason cited for this is nothing but the arrears pending before the Centre. “ The Centre is aware of the fact that the default is not deliberate,” said C D Nandakumar, general convener, the Joint Forum of Trade Unions. “Considering the pathetic financial condition of the Port, especially due to the under-performance of the ICTT and dredging costs, the request made by the Port is justified,” added the TU leader.
