Cochin Port Trust Ltd (CoPT) will lease out 42 acres of land at nearby Wellington Island to the Cochin Shipyard Ltd (CSL) for setting up an international ship repair facility.
A contract in this regard was signed here on Monday at a function presided by Union Minister of State for Communication IT and shipping, Milind Deora.
Cochin Port Trust Chairman Paul Antony and Shipyard Chairman and Managing Director K Subramaniam signed the contract, a press release said.
The ship repair project is one of the three identified PPP (Public-Private Partnership) projects for Cochin Port Trust by the Shipping Ministry to be awarded during the year 2012-13.
The other two projects are the Multi User Liquid Terminal project at Puthuvypeen and the General Cargo Terminal Q8-Q9 at Ernakulam Wharf. As per the agreement with the CSL, the CoPT will get the upfront premium, the value of the assets handed over, the guaranteed revenue quoted by CSL every year for the 30 year period and the lease rental for the land and water area allotted to them at the TAMP notified rates from time to time.In addition, 243 employees currently working in the Dry Dock and the Workshop area will be deputed to CSL.
Cochin Port Trust had issued a tender in June this year to set up an international ship repair facility on approximately 42 acres of land of the port trust and the shipyard had bid successfully for the project.
The CoPT will receive upfront payment of Rs 75 crore and the value of the assets handed over Rs 12.92 crore immediately on execution of the agreement. CSL is planning to put up a modern ship-lift system at an estimated total cost of Rs 490 crore over a four-year period. This is besides the upfront premium, value of assets, annual guaranteed amount, annual lease rental for land and water area payable to Cochin Port Trust.
A contract in this regard was signed here on Monday at a function presided by Union Minister of State for Communication IT and shipping, Milind Deora.
Cochin Port Trust Chairman Paul Antony and Shipyard Chairman and Managing Director K Subramaniam signed the contract, a press release said.
The ship repair project is one of the three identified PPP (Public-Private Partnership) projects for Cochin Port Trust by the Shipping Ministry to be awarded during the year 2012-13.
The other two projects are the Multi User Liquid Terminal project at Puthuvypeen and the General Cargo Terminal Q8-Q9 at Ernakulam Wharf. As per the agreement with the CSL, the CoPT will get the upfront premium, the value of the assets handed over, the guaranteed revenue quoted by CSL every year for the 30 year period and the lease rental for the land and water area allotted to them at the TAMP notified rates from time to time.In addition, 243 employees currently working in the Dry Dock and the Workshop area will be deputed to CSL.
Cochin Port Trust had issued a tender in June this year to set up an international ship repair facility on approximately 42 acres of land of the port trust and the shipyard had bid successfully for the project.
The CoPT will receive upfront payment of Rs 75 crore and the value of the assets handed over Rs 12.92 crore immediately on execution of the agreement. CSL is planning to put up a modern ship-lift system at an estimated total cost of Rs 490 crore over a four-year period. This is besides the upfront premium, value of assets, annual guaranteed amount, annual lease rental for land and water area payable to Cochin Port Trust.