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This is an archive article published on April 14, 2011

Shipping min seeks CRZ exemption for expansion in major ports

To fast track port capacity expansion projects under the public-private-partnership mode,the ministry of shipping has demanded an exemption from Coastal Regulation Zone authorities.

To fast track port capacity expansion projects under the public-private-partnership (PPP) mode,the ministry of shipping has demanded an exemption from Coastal Regulation Zone authorities in states. It has also suggested a single-window mechanism for obtaining environmental clearances.

In a draft Cabinet note circulated to concerned ministries,the shipping ministry has said that expansion projects within operational limits of existing major ports be spared from seeking clearance from state CRZ authorities. “Existing ports already have CRZ clearances and approaching authorities for every additional container terminal or berth only leads to delays,” an official told The Indian Express.

The move has come in the back drop of delays of over a year in getting environmental clearance for some of its projects. In 2010-11,of the 21 proposals for capacity expansion in major ports,only eight were awarded.

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The shipping ministry has held a series of meetings with officials in the Cabinet Secretariat to expedite expansion projects.

For project clearances,a two-step mechanism is followed presently with the Centre-appointed expert group undertaking an Environment Impact Assessment and the concerned state carrying out a coastal zone impact study.

“We are keen that the EIA and CRZ clearance processes are streamlined. Further,we also do not want the state to insist upon public hearing for every expansion project,” the source said. Also,if the environment and forests ministry orders a detailed EIA,that alone can take a year or more with the impact being assessed for all four seasons.

The ministry has been forced to take up the matter with the Cabinet Secretariat after environmental clearances for a number of port expansion projects did not happen within the stipulated 180 days. For instance,Essar and Noble Group that were awarded iron ore and coal berths,respectively at Paradip port could not commence construction for over a year due to lack of green clearance.

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Similarly,the development of a mega container terminal at Chennai involving an investment of Rs 3,600 crore remains stuck in the absence of environment clearance. The shortlisted developers have sought an extension in the date of submission of final financial bids. The ministry had to extend the deadline from January 2011 to June 2011.

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