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New
Delhi,
May 20:
The
cabinet committee on economic affairs (CCEA) on Thursday
approved the proposal for implementation of the ambitious
Sethusamudram Ship Channel Project (SSCP) at a cost of
Rs.2427.40crore.
This
would comprise the capital cost of Rs.2,233 crore and financing
cost of Rs.194.40 crore and including interest during
construction (IDC) component of R126.80 crore, finance minister
P.Chidambaram told newspersons after the CCEA meeting.
A
special purpose vehicle (SPV) would be set up for this purpose,
Chidambaram said. Elaborating on the project he said :”It
opens up a channel that will enable ships to avoid
going around srilanka.”
He
added that the channel would bring benefits as in the case of
Suez canal and panama canal .apart from giving a
“decent return “, the project
has “tremendous externalities” in defence, security
and anti-smuggling, he said.
On
the composition of the proposed SPV, he said the centre would
contribute Rs.495 crore whole the shipping corporation of India
and the Tuticorin Port Trust would contributeRs.50 crore each.
The
dredging corporation of India along with the Port Trusts of
Chennai, Ennore, Vizag and Paradip will contribute
Rs.30crores each.M/s. Sethusamudram Corporation Limited will be the nodal agency
for raising resources and implementing the project through the
Tuticorin Port Trust .
The
SSCP envisages dredging of the ship channel to connect the Gulf
of Mannar and Bay of Bengal through palk bay so that the ships
moving between the east and west coast of India could have a
continuous navigable sea route around the peninsula within India’s own territorial
waters.
The
CCEA also approved the launch of the centrally-sponsored scheme
on national horticulture mission with an outlay
of Rs.2,300 crore for the remaining period
of the tenth plan to promote the holistic growth of
horticulture.
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