CHENNAI: : The Sethusamudram Corporation Limited is considering the possibility of raising a part of the debt component of the project, mobilising public deposits — a move that might see greater participation of the people in the realisation of the `century-old dream'.

Making the special purpose vehicle weigh this option are the public sentiments associated with the project. "People want to be connected with Sethusamudram ... they are keen to invest," says N.K. Raghupathy, Chairman and Managing Director, SCL.

Public deposits could be a cheaper option than commercial loans, he told The Hindu here recently. Noting that banks were hinting at a seven- eight per cent floating rate of interest on the loans, he said that since the work began, several people have evinced interest in making donations.

According to the financial structure of the project, approved by the Union Cabinet's Committee on Economic Affairs in mid-May, half of the Rs.1,456.40-crore debt would be raised in domestic currency, and the rest in foreign exchange. The implementing agency appointed UTI Bank as the financial consultants for the project, which would achieve financial closure by October 31.

On the possibility of tapping the multi-lateral agencies for foreign currency loans, Mr. Raghupathy said it would be considered if the offer was without any string, and the loan was in American dollar.

On the status of the project, for which Prime Minister Manmohan Singh laid the foundation stone early this month, he said the Dredging Corporation of India dredged 3.25 lakh cubic metres until Wednesday. The company, which was awarded a contract for dredging 13.55 million cubic metres on a nomination basis, was planning to rope in one of its bigger dredgers from Bahrain. For the rest of the work, the SCL called for international bids. The sale of tender document began on July 18. The pre-bid meeting would be conducted in the third week of August.

Replying to a question on the land sought from the State Government, Mr. Raghupathy, who is also Chairman of the Tuticorin Port Trust, said he had written to the Chief Secretary, seeking 37.5 hectares in Dhanushkodi for developing land-based facilities for the channel, service jetties, a vessel traffic management system and boat repair yards at a total cost of Rs.144 crores.

The facilities would generate local employment, from the construction to operation stages. The State Government had, by an order in 1963, set aside the land for the Sethusamudram project.

The SCL sought five hectares from the State Government for setting up an administrative office in Mandapam.

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