Thiruvananthapuram: Union Minister of State for Shipping Milind Murli Deora has said that the Union Government would consider extending cabotage relaxation to the proposed Vizhinjam International Seaport also. He made this announcement after Shashi Tharoor, Union Minister of
State for Human Resource Development, who accompanied him, made such a demand. Deora, while speaking to reporters after inspecting the site of the proposed seaport here on Sunday, said that at present only Vallarpadom has been exempted from cabotage law. As per the cabotage rule, only Indian ships should transport cargo between Indian ports.
The exemption was necessary for enabling foreign ships also for trade between the country’s ports. The authorities of the Vizhinjam International Seaport Limited had asked for cabotage relaxation because they felt that more companies would express interest in developing the Vizhinjam port if the exemption was sanctioned.
In 2010 itself, project consultants International Finance Corporation (IFC) had advised the government to seek cabotage exemption for Vizhinjam port. Deora also announced that the Union Government was thinking of allotting another ship-building yard to the state.
