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Port development will not permit any real estate activity: Minister

Special Correspondent

"Detailed assessment made on resources and scope of project"

Pondicherry: Health Minister E. Valsaraj made a suo motu statement on the floor of the Assembly after question hour on Monday that the administration would implement the port project here without giving room for any real estate activity.

He said that the administration had examined the project and in keeping with the guidelines of the Centre on privatisation of ports, called for expression of interest from private promoters for preparation of a feasibility report.

He also recalled that a detailed assessment was made on resources and scope for development of the project. A letter of intent was also issued in June 2005 for development of the port on "Build Operate and Transfer" (BOT) basis. A private promoter was directed to submit a detailed report with a bank guarantee of Rs. 50 lakh. Due approval of the Cabinet and Lt. Governor was also accorded.

Mr. Valsaraj said that at this stage two writ petitions were filed in public interest in the Madras High Court challenging issue of letter of intent for the port development and the subsequent work.

He said the petitioners had stated that the Pondicherry Government had carried out the entire exercise without jurisdiction. Mr. Valsaraj also said that the High Court disposed of the writ petitions in favour of the Government. He said it was decided that the port was only a minor one under the Indian Ports Act 1908 and the State Government had full powers to develop it.

Environmental clearance

Mr. Valsaraj said the High Court also directed that the port development by a private developer should be on the basis of the clearance by the Union Environment Ministry and Forests under the Environmental Protection Act 1986.

He said it was also directed that the Ministry of Environment should take into consideration the objections raised by the petitioners.

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