The Paradip Port Trust (PPT) lost a sizeable part of its revenue since April 1 for the discontinuation of MGT (Minimum Guaranteed Tonnage) scheme.
The scheme was operating for last several years. Under it the importers enter into an agreement with the PPT and pay in advance various charges of the port for their guaranteed quantity of cargo in a year.It proved to be a handsome earning for the port for which two berths were reserved.Many steel plants like Tata Steel ltd, Steel Authority of India ltd, Bhusan Steel and Power ltd, Jindal Steel and Power ltd and Adani Enterprises had availed the MGT berth reservation scheme of the PPT.
But due to discontinuation of the scheme, the importers have stopped bringing their ships to Paradip due to long delays in berthing of their ships with higher draughts.It is said that due to imposition of the model code of conduct since declaration of general elections in the country, the MGT scheme which was valid till March 31 last could not be renewed by the PPT.The importers expect that the PPT would reintroduce the MGT scheme after the declaration of the election results on May 16.