After a spat with the road ministry, the Planning Commission is now headed for a tussle with the shipping ministry. The Plan panel is pitching for setting aside at least 15% of land available with the Mumbai Port Trust, one of the 13 major ports in India, for commercial use. However, the shipping ministry is against the proposal, saying the port is making profits and does not need to lease out land for non-port purposes to fund its operations.
The ministry recently gave its in-principle nod to all major ports to lease land for non-port purposes like real estate development. But the final decision depends on fund requirements of particular port and their ability to arrange for these funds through regular operations. The decision was triggered after the shipping ministry allowed Cochin Port Trust to allocate land for realty, following which various major ports applied for such approvals. The ministry asked major ports to assess their land requirement for operational needs and lease out excess land for other commercial purposes.
However, ministry sources told FE that no upper or lower limit has been set on how much land can be leased out. ?Yes, we have allowed ports to lease out land for commercial use. The uses may include real estate development. But we have not suggested what percentage of land can be leased out,? a senior official in the shipping ministry said, requesting anonymity.
According to an FE report on September 27, currently, nearly 50,000 acre is lying unused with the 13 ports. Mumbai Port Trust has nearly 100 acre of available unused land, most of which is prime city land.
Another official of the ministry said, ?Planning Commission?s recommendation is unreasonable as Mumbai Port Trust can finance its operations on its own, and it does not need to lease out land for other purposes. In the case of Cochin Port, it makes sense as the port is not getting enough traffic to sustain?. Incidentally, Mumbai Port is the sixth-largest port in terms of traffic handled till October this year, while Cochin stands at the eleventh position. ?
Planning Commission deputy chairman Montek Singh Ahluwalia pleaded ignorance on the issue. ?I have no information on this subject,? he told FE. A senior Planning Commission official, who deals with infrastructure, resonates Ahluwalia. However, requesting anonymity, he said ?land is a state subject and its use should be decided by the state government and not the Centre?.
Experts believe The matter may lead to friction between the two bodies of the government. The Plan panel has already made various suggestions against the ministry?s views on matters such as the development of national waterways. For National Waterway 5, the Planning Commission has rejected the development proposal of the ministry, saying private participation should be explored as the priority. The Planning Commission?s approval is required for securing funds for the project from the finance ministry. With the rejection, the shipping ministry could not get Rs 600 crore for the waterway.