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HomeIndiaJairam Ramesh seeks Centre’s clarity on ownership structure in Great Nicobar transhipment...

Jairam Ramesh seeks Centre’s clarity on ownership structure in Great Nicobar transhipment port project

In a letter to Shipping Minister Sarbananda Sonowal, the Congress Rajya Sabha MP also questions competition safeguards and funding support for the proposed port.

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New Delhi: Congress leader Jairam Ramesh wrote to Union Minister Sarbananda Sonowal, raising concerns over the proposed international container transshipment port at Galathea Bay in Great Nicobar Island.

In his letter posted Monday on X, Ramesh said he was writing as one among the many people concerned about the ‘ecological devastation’ from the Great Nicobar Island Project.

The Rajya Sabha MP further seeks clarification on the project’s ownership structure, competition safeguards and government funding support.

The letter adds to the debate around the Great Nicobar project that has been consistently opposed by Leader of Opposition in the Lok Sabha Rahul Gandhi. The project has also faced criticism from environmental groups and opposition leaders over its potential impact on the ecology of the island.

Referring to discussions held by the Public Private Partnership Appraisal Committee (PPPAC) of the Finance Ministry on 17 and 19 March, Ramesh highlighted that the Ministry of Ports, Shipping and Waterways itself had identified two major risks associated with the proposed transshipment port.

These challenges include developing a large-scale greenfield port project and diverting transshipment traffic from established regional ports.

Ramesh said that these competing ports were likely to be Colombo, Singapore and Port Klang (Malaysia), all of which are major transshipment centres in the region.

“It is extraordinary that even while recognising these huge risks—quite apart from the certainty of ecological devastation that will be caused by its construction—the transshipment port is being pushed through,” the former Union minister said in the letter.

The Congress leader highlighted that the PPPAC records show that at least 55 percent stake in the project’s special purpose vehicle (SPV) should be held by an Indian-owned and controlled entity, while also ensuring adequate competition among private bidders by setting eligibility criteria.

Seeking clarity on ownership rules, Ramesh posed three specific questions to the Union Shipping Minister.

Firstly, he asked whether the recommendation of a minimum 55 percent shareholding by an Indian-owned and controlled entity would also be allowed a 100 percent private ownership or whether there would be a mandatory public-sector stake in the project.

Secondly, he sought to know from the government whether it would ensure diversified private ownership of ports or permit a situation similar to airport privatisation, whereby only one private company has acquired six airports.

Thirdly, Ramesh asked whether the Ministry would provide viability gap funding (VGF) support from its own budget after the PPPAC reportedly rejected the ministry’s request for VGF assistance.

VGF is a government grant for public infrastructure projects that otherwise is financially unviable for private companies.

Finally, Ramesh seeks details of the timeline for the floating of tenders to private sector and final selection of a private operator.

The Modi government has pitched the Great Nicobar project as a strategic initiative aimed at strengthening India’s presence in the Andaman Sea and Southeast Asia, while also enhancing national security, economic activity and overall development for the region.

The Nicobar initiative comprises three projects–International Container Transhipment Terminal, Greenfield International airport and a new township spanning 16,610 hectares of land.

(Edited by Tony Rai)


Also Read: Great Nicobar Project is a necessity. India cannot ignore China’s maritime footprint


 

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