Monday, March 17, 2008

Navigating through SSCP NOT cost-effective: Capt. Balakrishnan

These two spreadsheets have been computed by Capt. Balakrishnan. The facts brought out are revealing and speak for themselves.

The conclusions put in question the assertions made in Setu project reports and in Baalu Committee report that SSCP will be a profit-making venture.

Out of a total voyage time ranging from 54.75 (Kochi-Chennai) to 261.0 (Aden to Kolkata), the savings in time range from 15.25 hours to 26.9 hours.

Fuel Cost savings, say, Rs. 5,55,069.1 for a voyage from Tuticorin to Kolkata will be offset by "Pilotage Charges".At the rates levied in Major Ports, the Pilot Charges could be as heavy as Rs. 50 lakhs per voyage. The conclusion is: "It is probable that circumnavigating Sri Lanka would be more cost effective."

These two spreadsheets put a big question mark on the financial viability of the project. Even by its own admission, the Committee has noted that Project authorities have erred in computing the navigable distance through the proposed Channel.

If additional security costs are taken into account, say, for the acquisition of naval vessels needed for coast-guarding the shallow (12 mt. Deep) mid-ocean channel, the project will not only be a white elephant for the nation, but also be a sick unit from day one and for a long, long time.

Hopefully, the justice system will take note of the claims made by the Govt. of India which are not based on facts and issue an injunction to scrap the project..


Read this doc on Scribd: SSCP voyages Fuel Costs and Savings

Read this doc on Scribd: SSCP Time Savings for voyages

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