The port has come in for opposition from local environmental groups and fishermen. How does Natelco plan to cope with the crisis?

We feel that the opposition is due to lack of information. Our intention is to keep the channel of information to the locals open, provide them will whatever information they want so that we can allay their fears. But we feel that once we putthe detailed report before the people concerned the position will be clear.

What is your assessment of the situation? Is it a mass movement or led by a small group of environmental activists?

I have to accept the fact that there have been substantial numbers of people taking part in the opposition organised by some people there. We have been working on the site for quite some time. But at this point of time, I would not say what is happening is a mass movement. It is a reaction out of fear and the anxiety of what such a mega project would do to the area.

Are you happy with the kind of support you have got from the Gujarat government on this issue?

We are working with the Gujarat government to be more proactive in dealing with the situation. We have to accept the fact that a government's reaction is very different to that of the private sector. They take measured steps. But at every level, we have met the administration and they have been very supportive. In fact, they have convened ahigh level meeting next week. I believe that before long, the Gujarat government will come out in open support of the project.

You have not zeroed in on the exact site. What are the issues in chosing one?

Before opening global tenders, the Gujarat government brought in a consultant for a pre-feasibility for each of the nine locations they had selected. For Maroli, they came up with 10 alternatives for the facility, which was given to us as a part of the tender document. In the course of our studies, we eliminated several options. Today, we have zeroed down on two options. We are ready to take a decision anytime now. The issue now is to integrate a fisheries harbour into the project, in a way that both are not in conflict, but complement each other.

Is that possible? Isn't pollution a deterrent to fishing?

Look at Vizag. That is a fisheries harbour. Mumbai has a fishing harbour - Sassoon Docks. Can you find a busier port than Mumbai today? One has to ensure that there is no clash ofinterests. Commercial ports add value to fisheries ports, because they can bring in support services, food processing. Once the fisheries harbour comes up, there will be tremendous potential for fishermen in Maroli. But of the two locations we have to see which is the most convenient for this.

Which are the two locations you have shortlisted?

We are looking at the Umbergaon Lagoon. The other is the outer harbour, where the all the land required will be reclaimed. In the lagoon, 97 per cent of the land is government owned. For back up facilities I may need some land. Having said this, to say that an infrastructure project will not displace anyone is not true. But I can say with certainty that the number of people who will be displaced by the port will be minimal.

Which market will you position the port in?

The pre-dominant cargo is going to be containers. If one looks at the level of containerisation in India, it is low by international standards. So this is where we feel the potentialis. Given the strategic location, we feel bulk cargo will also come in. Our vision is to make Maroli the most preferred port of call in India. We are benchmarking our efficiencies to neighbouring ports in other countries.

With so many ports coming up in the Gulf of Khambatt and with JNP, Mumbai and Kandla on the fringe, isn't there the danger of over-capacity in the region?

If you look at growth targets of exports and international trade, the current infrastructure is woefully inadequate. There is of course the danger that growth will remain below expectations. And competition will make things difficult. We will have to be on our toes to ensure least cost operations.

Are you looking at the transhipment business?

Since our facility will be world class, there is the enough opportunity for a big liner to look at it as a transhipment port. But a port cannot become a hub because I want it to. It becomes one if there is enough cargo coming in. Also all the western ports in India are a slightdetour from route of the mainline carriers.

Another major cost issue is hinterland connectivity. How do you propose to tackle it?

Among all the new ports likely to come up, Maroli has the best hinterland connectivity. The main western corridor by rail is 10 kms away. The NH8 is just 21 kms away. So in terms of closeness to connectivity, we are there.

Do you plan to make the investment for the links?

The terms for this are very clear. All hinterland connectivity will be taken up by a separate venture. We have the first right of refusal to take on these projects. After that the Gujarat government can execute it whichever way it wants. For the rail link which is just 9 kms, the Gujarat government has been talking to the Indian Railways.

What is your schedule for the project. When do you think the port will be operational?

Assuming that I will complete all the studies this year, the financial closure in the first quarter of next year, it should be operational in 2004.

Youhave been a telecom company so far. What is the synergy with ports? And given your current turnover which is in the region of Rs 200 crore, how do you hope to fund the port?

Sure, we are a telecom company. But this is a decision to diversify. As to why we got into port and not any other sector, we found that ports offered the most challenging opportunity. We have raised private finance earlier for our telecom venture, so we are confident about doing the same for this project. Right from day one we have been aware of the magnitude of the project. Today, we have developed the project, we have committed our resources. We are sure that it is a commercially viable project. We are already taking to a number of lending institutions in India and abroad. We expect to reach financial close much sooner than most infrastructure projects. My funding will ultimately depend on my business plan. Because I do not have any government guarantees. It's a negative from point of view of the bankers. So we are trying signagreements with some bulk operators. This is progressing well. So I will be able to bring in an element of comfort. When we gave a mandate to Fergusson, we told them that we wanted to know if the project was viable or not. At no point of time have we assumed that there will be a shift of cargo from other ports. We believe that the business plan will stand the test of time.

At the moment all you have is an MoU with Unocal. What will the equity structure be?

We are the lead developers, so we will have to hold over 51 per cent of the company. That is also a condition of the Gujarat government. We are however interested in bringing in port operators as strategic partners. We are already talking to specialised equipment suppliers and terminal operators. Only we want other parties to be as committed as we are, share the same enthusiasm.