Looking Back

• The channel project was originally proposed by a Britisher, Commandar A.D.Taylor of the Indian Marine in 1980

• In 1955, the Government of India set up the Sethusamudram project committee to tool into the feasibility of the project

• After several studies, the government took a concrete step towards the execution of the project when Rs. 4.8 crore was allocated for a feasibility study of the Sethusamudram Ship channel Prokect in the 2000-01 Union Budget

• Following a directive from the Union Ministry of Shipping, the Tuticorin Port Trust undertook a Ground breaking feasibility-cum environment study for the project

An Overview

            The Tuticorin Port Trust is the nodal agency for this Rs.2,427 cr- project.  The Government has a set up to a 'Special Purpose Vehicle' - the Sethusamudram Corporation Limited  and entrusted them with the task.   A debt equity ratio of 1.5:1 has been envisage for funding the project.  The Central government will contribute Rs. 495 crores towards the equity of SPV.  Tuticorin Port Trust, Shipping Corporation of India, Dredging  Corporation of India, Chennai Port Trust, Ennore Port Trust,  Visakapatnam Port Trust and Paradip Port Trust are partnering the project.  A portion of the equity is proposed to be raised through public issue and private placement.

Benefiting the Nation

• When Sethusamudram is in place, ships sailing from the wat to the east coast of india will no more need to circumnavigate around Sri Lanka.

• The channel will cut short sailing of an additional distance of 254-424 nautical miles and 21-36 hours of sailing time

• Substantial saving can be had in ship time and bunkering costs.  This will directly benefit the shipping industry and EXIM trade

• There will be substantial savings for the shipping companies, exporters and importers, manufacturers.  Trade will benefit from reduction in maritime transportation cost.

• Indian fishing boats can transit freely though Adam's Bridge.  This is not possible today.

• The project will contribute to the national economy, develop the coastal districts of Tamilnadu, and improve the International competitiveness of India's exports.

• A shorter navigation route between Kanyakumari and Tuticorin and other East coast ports of chennai, Ennore, Kakinada, Vishakapatnam, Paradip, Haidia and Kolkatta and ports in neighbouring countries such as Chittagong.

• India's exports will become globally more competitive. Domestic, consumers will also be benefited with industries producing cheaper goods for the domestic market due to cost of raw material imports.

• The project will facilitate coast movement of domestic cargo, leading to greater employment generation in the Ports and the industries in the vicinity.

• Maritime trade in Tamilnadu, both coastal and international, will flourish with rapid development of existing minor port in Ramanathapuram.

• Fishermen will directly benefit due to the potential for development of fishing harbours (between Nagapattinam and Tuticorin) with proper landing and storage facilities.

• Development of existing major and minor ports and new ports will accelerate industrial development of the hinterlands resulting in huge employment opportunities in manufacturing units and service sectors.

• The channel will become an invaluable asset from national defence and security point of view enabling easier and quicker access between the coasts. Indian Coast Guard and Naval ships will not have to circumnavigate around Sri Lanka.

• Transshipment of Indian Cargo on foreign shores will gradually decrease and after some time stop altogether.

• The Project will lead to considerable savings and earnings of foreign exchange. It is estimated that EXIM trade incurred on additional expenditure of approx Rs. 1000 Crores in foreign exchanging in transshipment of Indian cargo outside the country during the financial year 2003 -04 alone.

Opportunities

         The project involves dredging of 82 million cubic meters, for which global bids will be invited. It is estimated than in the first year of operation of the Project, 3055 ships will transit through the channel. This translates to about 9 transits per day. However, the proposed depth of 12m will impose restriction on the draft of the ships transiting through the channel.    

Addressing Apprehensions

        The channel alignment has been selected as as to ensure that there is no dredging in the Gulf of Mannar expect in the southern reaches of Adam's Bridge for a length of approximately 6 Km and width of 300m. No dredging will be required in the Gulf of Mannar Marine Biosphere Reverse (which is along the Indian Coast) or in its Adam's Bridge is a safe 20Km from the nearest island (shingle) forming part of the Gulf of Mannar Marine National Park.

        As the channel is at least 20 Kms away from marine breeding grounds, there will be no impact on either the coral reefs or the mangroves due to dredging or shipping operations. Also, the studies carried out for change in current directions and magnitude near coral reef areas.

Harbinger of Growth

The substantial benefits will accure to the national and regional economy. Actual payback period accumlated earnings due to implementation of the fishermen in the coastal districts.

The project will become self-sustaining over a period of time. According to conservative estimates, about 2,000 vessels will be using the canal annually. This will inevitably go up further.

Salient Features of Channel

     
Ø      Two way channel
Ø      Bottom Width of Channel = 300 m
Ø      Depth of Channel = -12
Ø     Permissible Draft of Vessel = 10m
Ø      Permissible Speed of Vessel in Channel = 8 Knots
Ø      Navigation by day and night
Ø   Over all length of Channel = 167 Km
Ø      Dredged Channel at Adam’s Bridge = 35Km
Ø      Dredged Channel at Palk Strait = 54 Km
Ø      Maximum Vessel Size 

      Length = 215m Breadth = 33 m Draft = 10 m