AIADMK secretary A. Anbalagan has urged the government to renegotiate terms of the concession agreement with the new private entity that owns the Karaikal Port as it was losing out on an important source of revenue under the existing terms.
Addressing reporters, Mr. Anbalagan said the previous concessionaire had been operating on 598 acres of government land in Karaikal on lease and revenue-sharing terms that was resulting in an estimated monthly loss of about ₹50 crore, amounting to a whopping annual loss of ₹600 crore, to the exchequer.
The Karaikal Port Private Limited (KPPL), previously operated by Marg Group, was acquired by Adani Ports and SEZ Limited in 2023 under India’s bankruptcy law, after the developer turned insolvent.
According to the AIADMK leader, the land lease and revenue terms that prevailed when the port had commenced operations in 2009 were already highly favourable to the developer. As per the lease terms, the government would get ₹9,000 per acre of land per year, and 2.6% of gross income from the port as concession fees instead of royalty. This meant that only ₹52 lakh per year was being paid to the government as lease charges in addition to ₹11 crore per year as share of revenue.
Slamming the authorities for negligence in reworking the terms of agreement when the ownership of the port changed hands, Mr. Anbalagan said as a consequence, the government was losing heavily due to outdated pricing of lease-revenue sharing terms. And, as Puducherry was out of the ambit of the Central Finance Commission, it was also denied any share of Central taxes paid by the port that amounted to about ₹500 crore annually, he said.
The AIADMK leader urged the Lieutenant Governor, Chief Minister and Chief Secretary to immediately reformulate the agreement with the new entity in tune with current market reality to secure a fair deal through better royalty and land lease revenue terms. A renewed pact on improved terms could ensure direct income of at least ₹600 crore every year. And, the revenue prospects through share of taxes would be boosted further if the Centre could be persuaded to bring Puducherry into the ambit of the CFC, he said.
