In the wake of banks rarely agreeing to sanction loans against barges, allegedly due to a clause under the SARFAESI Act, the Syama Prasad Mukherjee Port (SMP), Kolkata, which sees a bulk of cargo movement in barges, is hopeful of a solution arising from the recently concluded two-day maritime PPP conclave held in the city.
The Syama Prasad Mukherjee Port , of late, has been shipping goods to the northeast via the Indo-Bangladesh protocol route. A bulk portion of cargo is shipped on barges. However, an apparent drawback seems to be the availability of such vessels as barge operators are struggling to secure loans from banks.
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The chairman of The Syama Prasad Mukherjee Port , Vinit Kumar said that although the number of barges has increased over a period of time, an overall improvement is impending. He explained: “Under the SARFAESI Act, barges are not considered assets, unlike trucks against which one can easily obtain loans.”
He said that when it comes to granting loans, the banks look for either a strong balance sheet of the borrower or some collateral. The barges cannot be attached in case of loan defaults. It is to be noted that as per the SARFAESI Act, if a borrower defaults on a loan financed by a bank against collateral, then the bank gets sweeping powers to recover its dues from the borrower.
This creates immense pressure on barge operators. However, Mr Kumar said that the port authorities have held a thorough discussion with all stakeholders during the two-day maritime conclave and are hoping for a solution soon. “The IWAI is also working on this.” On the importance of barges for Kolkata Port, he said, “We need barges and small vessels. Presently, if one visits the Kidderpore dock, one would find at least 25 to 30 barges getting loaded and unloaded with goods.
The port has been shipping wheat, rice, steel, sponge iron etc to Bangladesh ports.” Earlier, the Union minister of port, shipping and waterways, Sarbananda Sonowal assured government support for the movement of barges on the national waterways
