Karnataka stands to lose Rs 100 cr in ignoring Lakshadweep

India’s emerald islands on the Arabian Sea, Lakshadweep Islands, is not a happy group of islands, their only link to the mainland the—transport ship service—is being stifled by the Karnataka government systematically, starving them of their share of natural resources from Indian mainland.

The islands depend on the mainland for every bit of their essential commodities, right from sand to fuel and salt to camphor, but due to the step-motherly disposition of the Karnataka government towards the transport vessel operators and infrastructure at the old port of Mangalore, the state was losing the status of being the provider to the Lakshadweep islands.

The islands gets ferry services from two centres—Mangalore and Kochi. The main islands in the cluster of Lakshadweep, Andrott and Kavarotti are nearer to Mangalore, while islands like Minicoy and Kalpeni are closer to Kochi in terms of marine navigation. But most of the supplies go from Mangalore as it is the nearest port to Bangalore.

“We get so many things from Bangalore too via Mangalore, like automobile parts, machinery, few commodities, textiles, certain types of fruits, vegetables, spices and few other things. For example, we get Himachal apples from dealers in Bangalore and our agents purchase vegetables in wholesale markets in Yeshwanthpur (Bangalore), Hassan, Chikmagalur and Shimoga. Very often, for all practical purposes, half of Karnataka is our supplier, but we always get stuck at Mangalore due to procedural delays,” said Mohammad Anwar, an agent of the suppliers.

The Kanara Chamber of Commerce and Industry has also expressed dismay over the delays in official procedures in old port of Mangalore. The chamber has sent several representations for formation of a maritime board.

According to one of the representations, the formation of a maritime board for Karnataka would settle all issues regarding fixing internal maritime trade. Maharashtra, Kerala, Goa and Gujarat on the Western seaboard do have their state maritime boards, which is why their trading routes are smooth with the Island clusters.

Former chief minister BS Yeddyurappa had even set aside a budgetary outlay of Rs100 crores for formation of state maritime board, but the legislative bill has been pending with the President of India for assent. MPs of Lakshadweep or of Karnataka have not taken it up with the central government.

“Till recently, there was no official to certify the vessels for fitness, due to which the vessel operators were not able to get clearance from the port authorities. Without port certification, even the insurance companies were unable to give insurance cover to the vessels, which hampered vessel operations,” said Abdul Rashid a vessel operator.

According to a rough estimates, Karnataka sends goods and commodities valued at Rs. 100 crores to Lakshadweep islands every month. There are 65 vessels registered in Mangalore, ferrying material to Lakshadweep. Owing to unorganised maritime transport policy between Mangalore and Lakshadweep, the vessel operators are feeling insecure.

This insecurity has also resulted in agents taking the business to Kochi. About 20% of the business has migrated to Kerala. According to the observations made by the trade bodies, another port facility to Lakshadweep vessels is coming up at Kozhikode, which will further reduce the share of Lakshadweep’s business of Karnataka.

Supplier no. 1
Karnataka sends textiles, fruits and vegetables, sand, cement, construction materials like steel, tiles, auto parts, autorickshaws, two-wheelers to Lakshadweep. Andrott is the largest island and is closer to Mangalore at 136 nautical miles.

If things are not put into perspective, Karnataka stands to lose a business of Rs100 crores per month. Instead of Bangalore and Mangalore, businessmen from Lakshadweep may develop contacts with Coimbatore and Kochi for supplies.