Monday, February 11, 2008

River Princess yet to find Prince Charming -February 11,2008

Hell of a pad
It's like a cancer that won't leave you even after a radiation overdose. Only death provides relief from the pain. Somebody in the tourism ministry wants to build a helipad at Ela, Old Goa for a proposed project to provide helicopter services no one knows for whom. Towards this end 20,998 sq mt of land has been transferred from the PWD to the Tourist Department. Now await the announcement of yet another grandiose extravaganza announced in the usual grandiloquent manner. By the way the department appears to be having a problem collecting the rent on the lease agreement it has with the Taj group of hotels to whom it hired out the helipad that has not had a landing in decades.
Here's another stunner. It costs Rs1,51,400 per month to maintain the Circuit House in Altinho, Panjim which is used by every politician, top official and influential person in India for a free stay in Goa paid by your tax money who on return to their mother States promptly fill out an exhaustive expense sheet. That's the kind of dough the government is paying GTDC to do the job.

That sinking feeling again
The bank guarantee of Jaisu Shipping Co Pvt Ltd tasked with the job of re-floating the River Princess ends on May 28, 2008. The legal implication of granting the company an additional month after its contract expired on May 20, 2007 would have come into operation only if it asked for an extension one month before ie April 20, 2007. It didn't and even if it can be arranged which as you know is possible in Goa where official files randomly disappear, it would depend on whether the government agreed to it. And also on the condition Jaisu pays the liquidated damages (or penalty) of Rs100,000 per day for a minimum of 30 days specified in the agreement. Jaisu also gave the government a performance security deposit in the form of a bank guarantee of Rs5.50 cr and a demand draft for Rs25 lakh as earnest money deposit that is refundable on successful execution of the salvage. In return for re-floating and towing away the ship, Jaisu was to be paid Rs5.50 cr.

Catch 22
Where am I going with this? It's simple. The River Princess is never going to be re-floated and towed away, so therefore the government should simply cut its losses and show Jaisu the door because as it happens Jaisu is not going to pay up the Rs30 lakh penalty since it can't salvage the ship and therefore clearly, must also cut its own losses having invested heavily so far. In fact, the only clarity in this entire saga is the definition of completion of contract which the agreement clearly states is when the ship is towed away wholly to an authorized ship breaking yard and the fact certified by a competent authority. And the only ship-breaking yard is in far away Alang in Gujarat but the ship grounded in June 2000 and corroding since without any maintenance, won't get that far in one piece. So, while the River Princess (built in 1975) will never be salvaged, the government ironically can salvage itself if it acts now. Because, though everyone in government failed miserably, the law department that scripted the agreement made sure that the Rs30 lakh penalty can be deducted from the EMD or by invoking the bank guarantee. But it has to invoke the bank guarantee payable in Panjim through the State Bank of India before the expiry date. Else, Jaisu will jettison the contract and jet off to Gujarat.

Lord, show us the light of day
Politicians have their wires crossed most times, some have short fuses, others electrifying in their speeches. The Calangute MLA actually wanted the lights put off. Let me throw light on the subject. On December 27, 2006 the Tourism Deparment deposited Rs37,013 with the Executive Engineer, division VI, Mapusa to repair the high mast lights at Candolim and Calangute beach. On March 6, 2007 it sent him another Rs79,432 for the same repair jobs. Shockingly, the MLA stopped the repairs of the Candolim high mast light because the beach shacks have hit his hotel's revenue. Strategically placed the rays of the powerful halogen carve a light swathe for late night revelers heading for the many shacks. There can't be any other reason.

Ray of hope
First Governor Jamir said Goans had a 'negative mindset.' Coming from a politician proportionately responsible for turning Nagaland into a war zone and into India's most unconstructive State, I found it hilarious. Did you know domestic tourists need an inner-line permit to enter Nagaland? But when Digambar Kamat said Goans were habitual opposers, it set me thinking. Maybe Goans known for their tolerance of corrupt politicians would not oppose if for instance a flower park was set up instead of a food park in Quepem because Goan women would be employed. I recently visited the Tanflora Infrastructure Park, a public-private venture at Amudagondapally village in Tamil Nadu promoted by the Tamil Nadu Industrial Development Corporation and Bangalore's MNA Associates. The Rs22 cr cooperative of 25 individual growers' raises cut roses in 54 greenhouses and will export 3 m this Valentine. Tanflora's next target is 10 m. Goa could grow spices. Goans would not oppose awards like the Kerala Tourism Department's Gruhastali project for conservation of heritage buildings instead of politicians/officials flying off on junkets abroad. No, but the government would never have it.
On February 4 when I was in Chennai, bars and nightclubs were asked to shut down after 11 pm. Just outside Chennai on the East Coast Road to Mahabillipuram liquor licenses have been cancelled because they took a heavy toll on the roads and because the TN government respects the people's sentiments. The industry will just have to cope. On the other hand, several accidents take place every Saturday night involving mainly bikes because of the traffic chaos created by the night markets and because every young tourist on the road is either stoned or drunk or simply foolhardy. These accidents are never reported.

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