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Kathmandu Thursday March 21, 2002 Chaitra 08,  2058.

Nepal incurring huge loss from Calcutta Port

By Ram Sharan Sedhai

KATHMANDU, March 20  The nation is incurring an annual loss of around Rs 7 million from the warehouses and open space that Nepal has leased from Indian authority at Calcutta and Haldia Ports as they have been lying idle for over one decade.

According to a high level official at Nepal Transit and Warehousing Company Limited, Nepal has to pay about Rs 7 million annually to the Indian authority for occupying Kidderpore Docks, open land at Circular-Garden Reach Road at Calcutta Port, which have been lying idle for more than 10 years.

"We have been paying a hefty amount to the Indian authority for occupying a dock and open space in the port, but they have been lying idle due to declining flow of goods through Calcutta Port to Nepal", said the official.

The total amount that Nepal has to pay to the concerned Indian authority to renew the warehouses currently stands at IRs 6.5 million and the amount will increase year by year if the government fails to take right decision. Of the total due amount, the government has recently paid around IRs 1.5 million, informed the source.

Shed A Kidderpore Docks including annex A and shed no. 25, which was no. 27 earlier, and Open Land space at Haldia Dock Interior Zone, which could be improved, are lying useless for over 10 years, as mode of change in the shipment of consignments.

As the Calcutta Port is the most expensive port in India and the Haldia port is offering cheaper services with more facilities, the movement of cargo through the Calcutta Port is decreasing, said the official. Another reason behind the no-use of the open space and warehouses in the Calcutta Port is the increasing use of containerized cargo to transport imported goods to Nepal, he added.

Though another one warehouse is also lying idle at the Calcutta Port, experts and concerned officials say that the government should retain it as it is at waterfront and Nepal being a landlocked country, may need it any time.

Secretary at the Ministry of Industry, Commerce and Supplies Bhanu Prasad Acharya speaking at a meeting with the Parliamentary Foreign Affairs and Human Rights Committee, a few days back stressed on terminating the agreement of the idle warehouses and open space with the Indian authority but emphasised on retaining one warehouse at the waterfront of the Calcutta Port.

"The continued leasing of the warehouses holds no meaning at the present time as it has only become a financial burden to the nation and we should get rid of it as soon as possible," suggested secretary Archarya.

Currently Haldia is emerging as an attractive port and is offering lucrative packages, the government has not paid any heed towards renewing the warehouses at the Calcutta Port for many years, which has added more financial burden to the country.

However, of the idle warehouses, one can be used for container cargo and the government had leased one of such warehouse for storing damaged cargo, which used to receive a large quantity of damaged cargo earlier.

Nepal had leased a covered area in the Calcutta Port on March 24, 1973 for 25 years and Shed A on August 1, 1980 and its annex on June 16, 1985. Similarly Jetty shed no. 8 has been non-existent since 1972, for which Nepal does not have to pay any money. But the space exists only in paper.

Likewise, the Circular Garden Reach Road at Calcutta was leased on March 24, 1973 for 25 years, which lies at the periphery of the port. Except for Dock Interior Zone and Residential Zone in the Haldia Port, the leasing period of Kidderpore Dock no. 25, 27 and Kidderpore Dock A Shed Annex and Circular-Garden Reach Road at the Calcutta Port have been already expired by 4, 2 and 4 years respectively.

Concerned officials say that the government should pay the due lease amount and terminate the agreement of some of the useless warehouses and improve the rest according to the present need.


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