KAKINADA ANCHORAGE PORT
|
<< Back |
| SHIP BREAKING UNIT AT KAKINADA PORT |
| During 1994 Ten plots were allotted to the ship breaking activity at Kakinada Port area. Seven ships were broken and the revenue derived by State and Central Government are as follows: |
Particulars |
State |
Central |
Total |
Customs Duty |
48 |
95 |
143 |
Excise Duty |
72 |
145 |
217 |
Sales Tax |
160 |
-- |
160 |
Port Dues |
6 |
-- |
6 |
Total |
286 |
240 |
526 |
|
| Subsequently, the Government have issued orders during 1996 designating Vodarevu Port as a specialized port for establishment of ship breaking unit. |
Recently, it is proposed to restart the ship breaking activity at Kakinada Port. M/s. NSRDC has been entrusted the consultancy services to prepare the techno-economic feasibility report. They have furnished the draft report duly suggesting the following. |
 |
- The area between Vakalapudi and Uppada for stretch of 1800 Mtrs. Beach front has been selected. There is no fishermen settlement and human habitation for about 3 KM radius near this area. Further, the fishing activity at this area is sparse.
- At present the land is under the possession of Revenue Department. These lands are to be required to transfer to Port Department for commencement of the Ship Breaking Activity.
- Twenty plots of size 80 M x 60 M each, i.e., 4800 Sq.m., area can be allotted.
- 0 to 60 Nos. of ships can be broken per year.
|
|
| Table: 2 Estimated Revenue to the State Government |
1 |
Premium per Plot per Annum |
|
|
a |
Premium per Sq.M per annum |
250 |
Rupees |
b |
Size of the plot 80 x 60 mtrs |
4800 |
Sq.Mtrs |
c |
Total Premium per plot |
12 |
Lakhs |
d |
No. Of Plots |
20 |
|
e |
Total Premium |
240 |
Lakhs |
2 |
Rent |
|
|
a |
Land rent per Sq. Mtrs. |
5 |
|
b |
Land rent per plot |
24000 |
Rupees |
c |
Land rent per annum |
4.8 |
Lakhs |
3 |
Tonnage Charge |
|
|
a |
Charges per Tonne of ship broken |
100 |
Rupees |
b |
Minimum Tonnes to be Charged |
10000 |
|
c |
Minimum Tonnage revenue per plot |
10 |
Lakhs |
d |
Minimum Tonnage revenue for 20 plots |
200 |
Lakhs |
4 |
APGS Tax |
|
|
a |
Minimum Tonnage expected |
200000 |
Tonnes |
b |
APGS Tax @ (Avg 6.5%) |
1755 (*) |
Lakhs |
|
Total Revenue |
2200 |
Lakhs |
|
Revenue per each plot |
: Rs. 110 Lakhs |
| Revenue per one ship |
: Rs. 55 Lakhs |
|
| EMPLOYMENT POTENTIAL: |
|
| |
| The Employment potential at the proposed Kakinada Ship Breaking Yard is estimated as follows: |
| Direct Employment: |
| i. Ship Breaking Activity : 3000 skilled and semi-skilled |
| Indirect Employment: |
| Indirectly, it initiates investment and further employment of about 2500 persons. |
ii. Support Industries – LPG/Oxygen plants |
: 300 |
| iii. Material Handling etc. |
: 200 |
| iv. Rerolling Mills |
: 1200 |
| v. Scrap Processing |
: 300 |
| vi. Sundry Traders |
: 500 |
|
The Ship Breaking industry can create 300 jobs for each Rs. Crore of investment. In addition to the above, a large number i.e. twice the total direct and indirect employment can be expected to be generated/engaged in services like transport, health, schools, and general services. |
| Project cost: |
| The approximate project cost: |
S.No. |
Description |
Cost per Tonne |
Cost in Lakhs per 2.0 Lakh Tonne. |
1 |
Equipment |
58 |
116 |
2 |
Salaried Staff |
100 |
200 |
3 |
Premium |
|
240 |
4 |
Rent |
|
4.8 |
5 |
Obtaining permission |
163.2 |
326.4 |
Total fixed Cost |
|
887.2 |
6 |
Gases |
275 |
550 |
7 |
Diesel oil |
80 |
160 |
8 |
Hired Labour |
192 |
384 |
9 |
Labour Safety |
6.1 |
12.2 |
10 |
Waste Disposal |
3.18 |
6.36 |
11 |
Beaching |
75 |
150 |
Total variable Cost |
|
1262.56 |
TOTAL COST |
|
2149.76 |
|
Total project Cost is Rs. 21,49,76,000. |
| CRZ Clearance |
| As per the directions of the Government, proposals are submitted to the Commissioner, A.P. Shore Development Authorities for issue of Environmental Clearance Certificate under CRZ to establish the Ship Breaking Units at Kakinada on Dt. 10.6.05 and the Clearance is awaited. |
| Air and Water Consent |
| As per the directions of the Government, proposals are submitted to the Commissioner O/o. Commissioner of Industries, Hyderabad for according consent for establishment under Air and Water Act for Ship Breaking Activity at Kakinada Port on Dt. 16.7.2005 and the consent is awaited. |
| |
|
^ Top |
|
