Sethusamudram Ship Canal
Saturday, July 09, 2005
Sethusamudram Shipping Canal - A 150 years dream of Tamilars come true
Billed by the maritime experts as Suez of the East, the Sethusamudram Ship Canal Project (SSCP) will reduce distance between East and west coasts by upto 424 nautical miles and sailing time of upto 30 hours.
The Sethusamudram Ship Canal Project (SSCP), originally conceived in 1860 by the British Commander A D Taylor of the Indian Marines, will soon see the light of the day. The 100-year-old dream for a shorter sea-route between East and West coast came close to becoming a reality last fortnight when the Union cabinet put its stamp of approval to the multi-million dollar project, much to the delight of all political parties in Tamil Nadu.
Billed by the maritime experts as Suez of the East, the canal will reduce distance between both the coasts by upto 424 nautical miles and sailing time upto 30 hours. The Sethusamudram Project was cleared first by the Jawaharlal Nehru cabinet in 1955 and studied by three committees in 1955, 1983 and 1996.
Elaborating on the project, finance minister P Chidambaram said it was a dream for over 100 years. “It opens up a channel that will enable ships to avoid going around Sri Lanka,” he said adding the channel would bring huge benefits, as were the cases with the Suez Canal and the Panama Canal.
Handsome returns
Apart from giving a ‘decent return’, Chidambaram said the project has ‘tremendous externalities’ in defence, security and anti-smuggling. It is estimated to cost Rs.2427.40 crore, which is going to be funded by the Centre, port trusts, Shipping Corporation of India, Dredging Corporation and others, apart from a initial public offer or private placement of Rs.226 crore.
The total capital cost would be Rs.2233 crore (Rs.22.33 billion) and financing cost Rs. 194.40 crore (Rs. 1.94 billion), Chidambaram said, adding the SPV will raise the funds.
The financial structure of the SPV would be in the debt-equity ratio of 1.5: 1. The mobilise Rs.226 crore (Rs.2.26 billion) the Sethusamudram Corporation Ltd (SCL) will be the nodal agency for raising resources and implementing the project through Tuticorin Port Trust.
The SPV would contribute Rs.495 crore (Rs.4.95 billion), while Shipping Corporation of India and Tuticorin Port Trust will contribute Rs.50 crore each. The Dredging Corporation of India along, with the port trusts of Chennai, Ennore, Vizag and Paradip, will contribute Rs.30 crore each.
The greatest beneficiary of the project will be Tuticorin harbour, which has the potential to transform into a transhipment hub such as those in Singapore and Colombo. The project will also help in the development of the proposed 13 minor ports in Tamil Nadu.
Committees galore
After it was conceived, almost once in every decade a committee or a prominent expert made a recommendation in favour of the construction of the canal.
In 1955, for the first time since Independence, the Government of India constituted the Sethusamudram Project Committee under A Ramaswamy Mudaliar to examine the feasibility and desirability of connecting the Gulf of Mannar with Palk Bay and its impact on the port of Tuticorin. The committee recommended that the canal project be linked to the Tuticorin Harbour Project and that both projects be undertaken simultaneously. The cost of the joint, project was then estimated at Rs.9.98 crore. The Sethusamudram Project Committee report was, however, put in cold storage. In 1963, the government sanctioned only the Tuti-corin Port project.
The government's enthusiasm to set up committees did not wane. Successive committees revised the cost of the project upwards. In 1994, the Tamil Nadu government appointed the Pallavan Transport Consultancy Services in Chennai to appraise and revalidate a 1983 report. The new report, submitted in March 1996, further revised the project cost to Rs.760 crore for 31 feet draft.
Hope on the project was revived in January 1999 when defence minister George Fernandes announced that the government would complete the digging of the Sethusamudram channel in three years. This was backed by the prime minister Vajpayee’s assurance that his government was committed to the project. Indeed, the government took a concrete step towards the execution of the project when Union finance minister Yashwant Sinha, in his Budget 2000-01, allocated Rs.4.8 crore for a feasibility study of the Sethusamudram project.
These waters have hitherto not been navigable by cargo shipping and the justification for the project is that it will save about 400 km of sailing distance between the east and west coasts of India.
Environment assessment
An Environmental Impact Assessment was done by the National Environment Engineering Research Institute (NEERI), Nagpur, although it has reportedly had no previous experience with marine projects of this nature. The project will give Tamil Nadu a big boost. The ports of Chennai and Tuticorin will directly benefit, harbouring the estimated 3000 ships expected to use the canal every year. The project will connect the ports of western India directly to the ones on the eastern coast.
The Tamil Nadu Environment Council has said the mass of earth excavated and deposited in the deep sea will affect marine micro-organisms. L Antony Samy, who is with a trust attached to the TNEC, disagreed with NEERI's view that the loss of micro-organisms will not be significant as sediments will be deposited in a small area. He said marine environment cannot be compartmentalised “and the oceanic current of the Bay of Bengal should be taken as a whole.”
Minister Baalu, however, dismissed these fears as unfounded on the ground that the proposed canal alignment will steer clear of coral reefs and the distance from the last island in the island chain to the proposed navigation line will be 20 km.
There is no vegetation in the area and there will, therefore, be no damage to the biosphere, he said, citing the NEERI report.
Contesting the view that dredging will irrevocably destroy coral reefs, Baalu pointed out that when the Tuticorin port was set up three decades ago, two or three coral reefs resurfaced after dredging.
As for the fishermen's fears about the dwindling fish catch, he again pointed to the Tuticorin port. The catch was around 55,000 tonnes a year when the port was set up, he said. It has now gone up to 1.2 lakh tonnes a year.
He also contended that the project will become self-sustaining over a period of time. According to conservative estimates, about 2000 vessels will be using the canal annually. This may eventually go up further. He reckoned that in the 19th year, the cumulative earnings from the project will cross Rs.5000 crore.
The project is a shot in the arm to a burgeoning coastal shipping sector of the country.Some experts also have argued the ‘pressing need’ for the project cost, a whopping Rs.2000 crore, which in most probability will be borne by the government. The dredging costs alone are expected to be Rs. 1680 crore. Though the government has chosen DC1 for dredging, but whether DCI alone would be able to dredge the 260 kilometre-long project, which involves dredging a draft of 12.8 metres remains a question.
Scepticism abounds on the project as certain quarters have raised the issue of cost-benefit analysis, but maritime experts say that once completed the project would be of immense economic benefit to the nation as those ships currently using Sri Lankan harbours need not use them anymore in view of the reduced distance and the corresponding reduction in navigation time. Once the second container terminal at Kochi is completed it would also enable the port to handle increased cargo load. As the debate rages on, chief minister J Jayalalithaa has struck the balance. In a memorandum to the Prime Minister, she has promised the state government's assistance to execute the project. She also said the project should be undertaken with the participation of all concerned and the concerns of environmentalists and fishermen should be kept in mind.
The Sethusamudram Ship Canal Project (SSCP), originally conceived in 1860 by the British Commander A D Taylor of the Indian Marines, will soon see the light of the day. The 100-year-old dream for a shorter sea-route between East and West coast came close to becoming a reality last fortnight when the Union cabinet put its stamp of approval to the multi-million dollar project, much to the delight of all political parties in Tamil Nadu.
Billed by the maritime experts as Suez of the East, the canal will reduce distance between both the coasts by upto 424 nautical miles and sailing time upto 30 hours. The Sethusamudram Project was cleared first by the Jawaharlal Nehru cabinet in 1955 and studied by three committees in 1955, 1983 and 1996.
Elaborating on the project, finance minister P Chidambaram said it was a dream for over 100 years. “It opens up a channel that will enable ships to avoid going around Sri Lanka,” he said adding the channel would bring huge benefits, as were the cases with the Suez Canal and the Panama Canal.
Handsome returns
Apart from giving a ‘decent return’, Chidambaram said the project has ‘tremendous externalities’ in defence, security and anti-smuggling. It is estimated to cost Rs.2427.40 crore, which is going to be funded by the Centre, port trusts, Shipping Corporation of India, Dredging Corporation and others, apart from a initial public offer or private placement of Rs.226 crore.
The total capital cost would be Rs.2233 crore (Rs.22.33 billion) and financing cost Rs. 194.40 crore (Rs. 1.94 billion), Chidambaram said, adding the SPV will raise the funds.
The financial structure of the SPV would be in the debt-equity ratio of 1.5: 1. The mobilise Rs.226 crore (Rs.2.26 billion) the Sethusamudram Corporation Ltd (SCL) will be the nodal agency for raising resources and implementing the project through Tuticorin Port Trust.
The SPV would contribute Rs.495 crore (Rs.4.95 billion), while Shipping Corporation of India and Tuticorin Port Trust will contribute Rs.50 crore each. The Dredging Corporation of India along, with the port trusts of Chennai, Ennore, Vizag and Paradip, will contribute Rs.30 crore each.
The greatest beneficiary of the project will be Tuticorin harbour, which has the potential to transform into a transhipment hub such as those in Singapore and Colombo. The project will also help in the development of the proposed 13 minor ports in Tamil Nadu.
Committees galore
After it was conceived, almost once in every decade a committee or a prominent expert made a recommendation in favour of the construction of the canal.
In 1955, for the first time since Independence, the Government of India constituted the Sethusamudram Project Committee under A Ramaswamy Mudaliar to examine the feasibility and desirability of connecting the Gulf of Mannar with Palk Bay and its impact on the port of Tuticorin. The committee recommended that the canal project be linked to the Tuticorin Harbour Project and that both projects be undertaken simultaneously. The cost of the joint, project was then estimated at Rs.9.98 crore. The Sethusamudram Project Committee report was, however, put in cold storage. In 1963, the government sanctioned only the Tuti-corin Port project.
The government's enthusiasm to set up committees did not wane. Successive committees revised the cost of the project upwards. In 1994, the Tamil Nadu government appointed the Pallavan Transport Consultancy Services in Chennai to appraise and revalidate a 1983 report. The new report, submitted in March 1996, further revised the project cost to Rs.760 crore for 31 feet draft.
Hope on the project was revived in January 1999 when defence minister George Fernandes announced that the government would complete the digging of the Sethusamudram channel in three years. This was backed by the prime minister Vajpayee’s assurance that his government was committed to the project. Indeed, the government took a concrete step towards the execution of the project when Union finance minister Yashwant Sinha, in his Budget 2000-01, allocated Rs.4.8 crore for a feasibility study of the Sethusamudram project.
These waters have hitherto not been navigable by cargo shipping and the justification for the project is that it will save about 400 km of sailing distance between the east and west coasts of India.
Environment assessment
An Environmental Impact Assessment was done by the National Environment Engineering Research Institute (NEERI), Nagpur, although it has reportedly had no previous experience with marine projects of this nature. The project will give Tamil Nadu a big boost. The ports of Chennai and Tuticorin will directly benefit, harbouring the estimated 3000 ships expected to use the canal every year. The project will connect the ports of western India directly to the ones on the eastern coast.
The Tamil Nadu Environment Council has said the mass of earth excavated and deposited in the deep sea will affect marine micro-organisms. L Antony Samy, who is with a trust attached to the TNEC, disagreed with NEERI's view that the loss of micro-organisms will not be significant as sediments will be deposited in a small area. He said marine environment cannot be compartmentalised “and the oceanic current of the Bay of Bengal should be taken as a whole.”
Minister Baalu, however, dismissed these fears as unfounded on the ground that the proposed canal alignment will steer clear of coral reefs and the distance from the last island in the island chain to the proposed navigation line will be 20 km.
There is no vegetation in the area and there will, therefore, be no damage to the biosphere, he said, citing the NEERI report.
Contesting the view that dredging will irrevocably destroy coral reefs, Baalu pointed out that when the Tuticorin port was set up three decades ago, two or three coral reefs resurfaced after dredging.
As for the fishermen's fears about the dwindling fish catch, he again pointed to the Tuticorin port. The catch was around 55,000 tonnes a year when the port was set up, he said. It has now gone up to 1.2 lakh tonnes a year.
He also contended that the project will become self-sustaining over a period of time. According to conservative estimates, about 2000 vessels will be using the canal annually. This may eventually go up further. He reckoned that in the 19th year, the cumulative earnings from the project will cross Rs.5000 crore.
The project is a shot in the arm to a burgeoning coastal shipping sector of the country.Some experts also have argued the ‘pressing need’ for the project cost, a whopping Rs.2000 crore, which in most probability will be borne by the government. The dredging costs alone are expected to be Rs. 1680 crore. Though the government has chosen DC1 for dredging, but whether DCI alone would be able to dredge the 260 kilometre-long project, which involves dredging a draft of 12.8 metres remains a question.
Scepticism abounds on the project as certain quarters have raised the issue of cost-benefit analysis, but maritime experts say that once completed the project would be of immense economic benefit to the nation as those ships currently using Sri Lankan harbours need not use them anymore in view of the reduced distance and the corresponding reduction in navigation time. Once the second container terminal at Kochi is completed it would also enable the port to handle increased cargo load. As the debate rages on, chief minister J Jayalalithaa has struck the balance. In a memorandum to the Prime Minister, she has promised the state government's assistance to execute the project. She also said the project should be undertaken with the participation of all concerned and the concerns of environmentalists and fishermen should be kept in mind.
What is this Sethusamudram Ship Canal Project?
With the inauguration of Sethu Samudram Ship Channel Project by Prime Minister Manmohan Singh on July 2, a more than 100-year-old dream of the nation is on its way to fulfilment. But like other mega projects such as the river linking project and the Sardar Sarovar project, this project is also not without controversy. Proponents of the project say that it will be the harbinger of economic growth.
Interestingly, the project was originally proposed by AD Taylor, a Britisher in the Indian Marine in 1860. Read full story...
Interestingly, the project was originally proposed by AD Taylor, a Britisher in the Indian Marine in 1860. Read full story...
The Sethusamudram canal - I am sure its going to be help tamilars
The Sethusamudram ship canal project has stirred up a controversy. On the one hand, trade will get a push, on the other, the impact on ecology and coastal villagers’ livelihood is debatable.
The Sethusamudram Ship Canal Project, proposed in 1860, cleared first by the Jawaharlal Nehru cabinet in 1955 and studied by three committees in 1955, 1983 and 1996, has finally seen the light of day with the Manmohan Singh government clearing it much to the delight of all political parties in Tamil Nadu. Read full story...
The Sethusamudram Ship Canal Project, proposed in 1860, cleared first by the Jawaharlal Nehru cabinet in 1955 and studied by three committees in 1955, 1983 and 1996, has finally seen the light of day with the Manmohan Singh government clearing it much to the delight of all political parties in Tamil Nadu. Read full story...
Sethusamudram project will be a boon to Jaffna, says Lankan Tamil geographer
PK Balachanddran - Amidst loud protests in Sri Lanka over India's plan to dig a shipping channel through the Palk Strait, a Tamil geographer of Jaffna University has come to its defence saying that the project will be a boon rather than a bane for the war-shattered economy of Jaffna. Read full stroy...
Sethusamudram Canal project innagurated by Indian Prime Minister amidst protests
Prime Minister Manmohan Singh on Saturday inaugurated work on the Rs 2,427 crore Sethusamudram Ship Channel Project that would cut the sailing distance between the east and west coasts, amidst protests by fishermen and environmentalists.
While United Progressive Alliance chairperson Sonia Gandhi attended the function, Tamil Nadu Chief Minister J Jayalalithaa boycotted it, accusing the Centre of subverting environmental clearances and not addressing the concerns of fishermen and environmentalists. Read full story...
While United Progressive Alliance chairperson Sonia Gandhi attended the function, Tamil Nadu Chief Minister J Jayalalithaa boycotted it, accusing the Centre of subverting environmental clearances and not addressing the concerns of fishermen and environmentalists. Read full story...
Sethusamudram Canal - A canal that's more than a waterway
According to an L&T Ramboll report, between 1860 and 1922 as many as nine proposals were formulated for cutting a canal across the narrow strip of land mostly through the Rameswaram island to connect the Gulf of Mannar with Palk Bay. Read full story...
The Sethusamudram Ship Canal Project - Dream come true for tamilars
The Sethusamudram Ship Canal Project conceived more than a century ago is still in its embryonic stage.
The project was originally conceived in 1860 by the British Commander A.D. Taylor of the Indian Marines. Thereafter, almost once in every decade a committee or a prominent expert made a recommendation in favour of the construction of the canal. In 1955, for the first time since Independence, the Government of India constituted the Sethusamudram Project Committee under Sir Ramaswamy Mudaliyar to examine the feasibility and desirability of connecting the Gulf of Mannar with Palk Bay and its impact on the port of Tuticorin. Read full story...
The project was originally conceived in 1860 by the British Commander A.D. Taylor of the Indian Marines. Thereafter, almost once in every decade a committee or a prominent expert made a recommendation in favour of the construction of the canal. In 1955, for the first time since Independence, the Government of India constituted the Sethusamudram Project Committee under Sir Ramaswamy Mudaliyar to examine the feasibility and desirability of connecting the Gulf of Mannar with Palk Bay and its impact on the port of Tuticorin. Read full story...
