Cochin Chamber of Commerce and Industry has expressed apprehension over the Land Policy for Major Ports adopted at Kochi saying that it will affect the port users and also result in arrival of less cargo to the port.

Raising this issue at a meeting convened by the Chamber with Mr K Mohandas shipping secretary the chamber president, Mr Anand Menon said the decision of the Kochi Port management to renew/extend the lease of land only for a maximum period of 11 months would put the lessee to serious hardship.

He said that lessee should be allowed on a long term basis so as to allow sufficient stability for his business activities. The grant of licence for a short term as specified in the Land Policy does not allow the licensee sufficient time to develop a business strategy that can be implemented successfully.

While revenue from the land is the port's major source of income and the port has sufficient land/covered area that is in excess of demand, it is observed that leases are not being renewed and are being cancelled without proper justification. Such actions would result in dislocation of business activities, which is a huge revenue loss for the port. Though the Land Policy clearly states that the lease can be renewed for a period of 30 years unless the land is specifically required for the port's own use, the port is granting fresh renewals only for shorter periods and not 30 year renewals as in the past.

The stipulation in the Land Policy that port lands can be leased only on an upfront basis is another stumbling block since it becomes incumbent on the lessee to raise a huge sum of money even before starting his business. The Chamber President felt that the old policy of allotting land on an annual basis lease basis would be ideal.

Mr Menon further said that “With the commissioning of the Vallarpadam project, these challenges are set to multiply. While every effort is being made to attract more cargo to Kochi, especially since we have the disadvantage of not having a vast industrialised hinterland, we are also tied down by certain regressive policies that are in place.”

The Chamber urged the Shipping Secretary to take immediate steps to clear the air of uncertainty and to allow the genuine lease holders to register their leases and carry on business activities in the port area as always.

(Sourced from Business Line)