Briefing newspersons, Cabinet spokesman Pramod Mahajan said the projectbased in Jodhpur would be a centrally assisted project but would beimplemented by the Rajasthan government.

CCEA also cleared the expansion of Chennai port's container terminal withprivate participation at an estimated cost of Rs 400 crore. P&O Ports ofAustralia, PSA Corporation of Singapore and Hutchison Port Holdings of HongKong had submitted innovative proposals for developing and managing thecontainer terminal and were technically qualified.

The final selection of foreign partners for the project would now bereferred to an empowered committee, which would take a decision within threemonths, Mahajan said. This would be the first special purpose solution ofits kind for developing a project at a major port.

At the Jodhpur power plant, 35mw of power is proposed to be generated withsolar base and 105mw from naphtha. This will be the first project of itskind in the developing world. Mahajan said this environmentally friendlyproject would be funded by the global environmental facility to the extentof $50 million and a German grant of 250 million marks. The centralgovernment will only give an assistance of Rs 50 crore.

The minister indicated that if the project proved a success, more such unitswould be set up in various states.

The expansion of the Chennai container terminal would help the port increaseexports. The project would be completed within the next two years. Theexisting container quay has a length of 600 meters and can handle a volumeof 2.10 lakh teus. After the expansion, the port can handle a volume of 4.75lakh teus.

Mahajan said that the CCEA decision was within the framework of the 1996policy of private participation in the port sector.

The project would be awarded under non-negotiable conditions, providing forminimum level of investment, for attracting mainline vessels and taking overof labour.

The selection would be done on the basis of maximum financial return to theport, Mahajan said.

The surface transport ministry had sought the CCEA approval for proceedingwith the project without going through the tender route. Finance ministryhad opposed the special purpose solution since the Chennai Port Trust (CPT)did not invite open tenders.

The port trust had invited innovative proposals in October 1997 for 3million tonne capacity container terminal. CPT would need a container portsince most of the bulk cargo being handled by it would move to its satelliteport at Ennore.

Among the bulk cargo being handled by it is steel and iron which are alsotermed as dirty cargo.

CCEA also cleared other projects concerning the surface transport ministry.These include a Rs 219.28-crore project for construction of a bypass nearIndore, Madhya Pradesh, and four-laning of the 18-km Indore-Dewas section ofthe National Highway Three. The project would be completed in 42 months.

In another decision, the CCEA approved a centrally sponsored scheme ofintegrated development of fruits in the ninth plan with an outlay of Rs 125crore. there will be 100 per cent grant to the state governments under thisscheme. The minister said this is expected to generate 1.6 million qualityplanting material of fruit crops every year. He also said that thegovernment believed that 95000 hectares of additional areas will be broughtunder fruit cultivation.

In yet another decision, the CCEA approved the merger of Hindustan CocaCola Holding and the Bharat Coca Cola Holding. The new entity would now becalled Hindustan Coca Cola Holdings.

The minister said the two companies had gone through all the necessaryformalities, including mandatory approval from the judiciary, before themerger proposal was formalised.