Moreover, Rewas Port has already got inter-tidal land of 834 hectares for the project from Maharashtra Maritime Board
Will the long-awaited Rewas Port by Reliance Industries (RIL) at Dharamtar Creek, take off? After Maha Mumbai Special Economic Zone was scrapped by Maharashtra state government in early 2011 with other issues remaining unresolved, the last hopes for Rewas Port are fading off.
Rewas Port is to have set up south of Karanja Fishing Harbour in Dharamtar Creek in Maharashtra. It is in close proximity to the government-run Jawaharlal Nehru Port (JNP) as well as Mumbai Port.
Sources privy to the project told DNA Money, "There are a couple of issues that need to be cleared or else don't know how the project will shape up. One of them is 'Waterfront Royalty Charges' being levied by Mumbai Port Trust (MbPT)." The charge sought by MbPT authorities is Rs 950 crore.
Such a charge is being levied for using the waters under MbPT's jurisdiction. The charge is also linked with the state government's Ready Recknoner rate, which keeps witnessing upwardly revision every year. Rewas Port doesn't have a direct access to the sea, and as a result, ships sailing in and out will have to pass through MbPT channel.
"The charges are as per the government policy. There are two options -- first is upfront payment and second, rentals. In this case, RIL wants to retain whatever land they have for the proposed port as well as license, that is why they are claiming that MbPT's charges are very high and been demanding for negotiations," said another source.
"The company took a lot of time in getting environmental clearance. Problem is they want concessions everywhere. Also, if they have problems with the government's prescribed rates, why did they pay for construction of Mumbai Trans Harbour Link connecting Mumbai and Navi Mumbai?" questioned a senior official. All those public and private agencies in and around Mumbai Harbour and the channel have paid for construction of 21-km long sea link project.
A questionnaire to Reliance Industries seeking details of the port project remained unanswered.
An official who did not wish to be named shared with DNA Money that if the state wants, it can take back the entire port project from them and MbPT and JNPT have the capabilities to jointly implement the project. "They have already crossed the time limit within which they were supposed to commence construction," he said.
Moreover, Rewas Port has already got inter-tidal land of 834 hectares for the project from Maharashtra Maritime Board.
On the demand-supply side and business model, with multiple ports dotting the western shore, it is doubtful if there would really be demand for another major port within the vicinity.
After RIL's ambitious plan of setting up Maha Mumbai Special Economic Zone spread over 35,000 acres in Raigad district was scrapped in early 2011. This meant a serious blow to the port which was hoping to handle the dedicated cargo.
Secondly, environmental clearance for Wadhavan Port, near Dahanu, is expected soon.
Thirdly, Jaigarh as well as Dighi Port have started their operations, and cargo handling will only increase in the years to come. At present, Dighi Port is handling bauxite, steel and coal on a regular basis.
MbPT too is on an expansion mode with plans to add another 18 million tonnes of cargo in two-and-a-half years. After reviving Mumbai Offshore Container Terminal project, it is likely to be operational in another two years, with a capacity of around 8 million tonnes. LNG terminal too would add another five million tonnes.
Additionally, first phase of under construction fourth terminal of JNP, is scheduled to be operational by January 2018. Once second phase is through, the container port's capacity will double to nearly 10 million Twenty Foot Equivalent Units (TEUs). JNPT also has plans to set up port-based SEZ.
"If all the cargo and containers get spread out to so many ports, it is like nibbling away a cake. Where is the scope left for Rewas Port project to be viable? Had the port been viable, it would have got ready by now. Other port projects are either in the advanced planning stage or will get operational soon," said a source.
One-and-a-half years ago, City and Industrial Development Corporation (CIDCO) had updated the state government on getting back its land parcels given for Maha Mumbai SEZ. But none of the land has been returned by RIL, this despite the Maha Mumbai SEZ plans getting scrapped.
According to a report, two years ago, shipping minister Nitin Gadkari had assured to find a solution to the Right of Way issue or Waterfront Royalty Charges.
BUILDING ANEW
- Rewas Port has plans to be a deep draught all-weather port. The project has three phases
- There would be container and coal terminals as well as cement and liquid berths
- After serious dredging, the draught would be 20 metres
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