Ministry of Commerce gives nod for setting up port-based SEZs in Kerala

Kochi: The Union Ministry of Commerce and Industry has issued two separate notifications approving the setting up of port-based special economic zones at Vallarpadam and Puthuvypeen within the Cochin Port Trust area.

With this, the port has achieved one of the major milestones towards the setting up of International Container Transhipment Terminal (ICTT) at Vallarpadam and associated developmental activities within the port limits.

Senior port officials said that declaration of the ICTT area at Vallarpadam as a SEZ was one of the conditions of contract in the licence agreement between Cochin Port Trust and Dubai Ports.

The SEZ at Vallarpadam will occupy an area of 115.25 hectares and the one at Puthuvypeen, 285.84 hectares.

Declaring the project area as an SEZ, the port officials said that it would enable the developer avail themselves of the concessions offered by the Union Government, which would thus reduce the cost of development by helping bring construction material as well as plant and machinery duty-free.

It would also reduce operating cost since duty and tax concessions would be available.

Moreover, it would attract the investors because the investments also enjoy income-tax concessions.

In order to successfully implement the various development proposals, it is felt that the fixed cost as well as the operating cost of these developments must be brought down to the minimum.

The port has vast greenfield area to the extent of about 450 hectares at Vallarpadam and Puthuvypeen adjacent to the navigational channels and close to the sea for development of port facilities and port-based industries.