Government sources indicated that the Calcutta Port Trust and the transport department will soon sign a memorandum of understanding for denotifying the port and conservancy limit of the CPT, which now stretches from Farakka in the north to the Hoogly river's mouth in the Bay of Bengal.

According to the Indian Ports Act, 1908, no port can be developed within any port's P&C limit. Since Kulpi port falls under the present P&C limit of CPT, such denotification is a must.

Once the MoU is signed, CPT will denotify the 3.5km long waterfront at Kulpi, about 60km downstream Calcutta, from the limits of Calcutta port and will hand it over to the state government.

To facilitate the denotification, the state legislature has already passed the WB Maritime Port Bill 2000, which is now under consideration of the President.

The Mukand-Keventer Consortium will hold 89 per cent of the equity and WBIDC the rest. The first MoU for the project was signed way back in October 1994 between WBIDC and Keventer Agro Ltd. The Mukand group was roped in later.Mr Jalan told The Financial Express that the company will prepare two DPRs - one for the port, and the other for the SEZ. An environmental impact assessment study will also be taken up. "We have plans to complete all the studies in a year, if not earlier," he said. The company is yet to finalise the consultants for these studies.

Delhi-based Howe (India) Ltd submitted the first techno-economic feasibility study on the port in August 1995, observing that the project is viable technically, but unviable financially, as a standalone project. It suggested the addition of an exclusive industrial park and export promotion zone to make it viable.

The apex body of the Indian ports, the Indian Ports Association, the apex body of the Indian ports which evaluated the findings of the Howe study, supported this view.