The shipping ministry?s consultative committee on Wednesday decided to disburse the dredging subsidy to KoPT, anytime within March 31.
A shipping ministry official told FE that Union shipping minister of state Mukul Roy on Wednesday attended the consultative committee meeting in Delhi and directed the shipping ministry to release the subsidy for onward payment to Dredging Corporation of India (DCI)
Roy, when contacted, said: ??The matter has been resolved.?? He didn?t want to comment on details. The shipping ministry official said Roy after the consultative committee meeting also went to meet finance minister Pranab Mukherjee.
The subsidy amount, he said, will be decided after the KoPT and DCI works out the figure between them.
While DCI has demanded Rs 375 crore, the contract amount for one year of dredging at Haldia port, KoPT has claims of Rs 1,028 core on account of subsidy arrears.
KoPT officials said since the government was not regular in paying the subsidy, it has piled up some dues. The ministry official said the subsidy amount should not exceed Rs 400 crore.
In fact, the shipping ministry did not release the dredging subsidy, as it did not get the funds from the finance ministry. Sources close to the development said Roy made clear that the shipping ministry should make suitable arrangements so that the subsidy reaches KoPT within March 31. This should happen even if the finance ministry doesn’t release funds to provide the shipping ministry with the subsidy amount, the minister reportedly directed.