Sethusamudram project to be laid to rest

16 Mar 2021 Editorial Team

The special purpose vehicle (SPV), Sethusamudram Corporation Ltd (SCL), for developing the Rs 2,427.40 crore Sethusamudram project between India and Sri Lanks is set to be wound up.

This comes against the backdrop of the government initiating the process of selling its 63.75% stake in the Shipping Corporation of India (SCI).

The Sethusamudram maritime project was aimed to create a new shipping lane connecting the Bay of Bengal and Gulf of Mannar through the Palk Strait and Palk Bay. The project was to be financed through equity contributions from state-run firms, including SCI, which is under the administrative control of the Ministry of Ports, Shipping and Waterways (MoPSW).

According to a government document accessed by the media, a resolution has been passed for seeking an additional grant of Rs 115.72 crore from the government to settle the dues of the Dredging Corporation of India (DCI) for the dredging works carried out in Sethusamudram Ship Channel Project and also a proposal to MoPSW for winding up of SCL along with fund position.

Dredging works in Adam's Bridge region, also known as Rama Setu, was stopped by the Supreme Court in an order issued in August and September 2007 following petitions filed by individuals and groups.

The document noted that the Supreme Court's final hearing, which was scheduled in April 2018, had been withheld indefinitely.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

According to the document, works had been suspended since September 2007, consequent to an interim stay by the Supreme Court for carrying out dredging operations in Adam's bridge area. Pending a final decision on alternative alignment, all the dredgers were withdrawn since July 2009.

Besides SCI, the project also saw equity participation from the DCI and the Port Trusts of Chidambaranar, Paradip, Kamarajar, Visakhapatnam, and Chennai.

The government had appointed SCL to raise finance and to undertake activities to facilitate the operation of a navigable channel from the Gulf of Mannar to the Bay of Bengal through Palk Bay (Sethusamudram Ship Channel Project). SCI has invested Rs 50 crore in this project, as of FY 2016-17.

Image Source

Also read: DPGC and others bid for Shipping Corporation of India

Also read: Sri Lanka opts out of port deal with India

The special purpose vehicle (SPV), Sethusamudram Corporation Ltd (SCL), for developing the Rs 2,427.40 crore Sethusamudram project between India and Sri Lanks is set to be wound up. This comes against the backdrop of the government initiating the process of selling its 63.75% stake in the Shipping Corporation of India (SCI). The Sethusamudram maritime project was aimed to create a new shipping lane connecting the Bay of Bengal and Gulf of Mannar through the Palk Strait and Palk Bay. The project was to be financed through equity contributions from state-run firms, including SCI, which is under the administrative control of the Ministry of Ports, Shipping and Waterways (MoPSW). According to a government document accessed by the media, a resolution has been passed for seeking an additional grant of Rs 115.72 crore from the government to settle the dues of the Dredging Corporation of India (DCI) for the dredging works carried out in Sethusamudram Ship Channel Project and also a proposal to MoPSW for winding up of SCL along with fund position. Dredging works in Adam's Bridge region, also known as Rama Setu, was stopped by the Supreme Court in an order issued in August and September 2007 following petitions filed by individuals and groups. The document noted that the Supreme Court's final hearing, which was scheduled in April 2018, had been withheld indefinitely.4th Indian Cement Review Conference 202117-18 March Click for event info According to the document, works had been suspended since September 2007, consequent to an interim stay by the Supreme Court for carrying out dredging operations in Adam's bridge area. Pending a final decision on alternative alignment, all the dredgers were withdrawn since July 2009. Besides SCI, the project also saw equity participation from the DCI and the Port Trusts of Chidambaranar, Paradip, Kamarajar, Visakhapatnam, and Chennai. The government had appointed SCL to raise finance and to undertake activities to facilitate the operation of a navigable channel from the Gulf of Mannar to the Bay of Bengal through Palk Bay (Sethusamudram Ship Channel Project). SCI has invested Rs 50 crore in this project, as of FY 2016-17. Image Source Also read: DPGC and others bid for Shipping Corporation of India Also read: Sri Lanka opts out of port deal with India

Infrastructure Energy

09 Mar 2026

BMW Industries partners with IOCL for PNG supply at Bokaro plant

BMW Industries has entered into a strategic partnership with Indian Oil Corporation (IOCL) for the supply of Piped Natural Gas (PNG), reinforcing its commitment to adopting cleaner and more efficient energy sources for its operations.The agreement was signed at the Eastern Region Pipelines (ERPL) headquarters in Kolkata. The partnership is expected to support the company’s upcoming manufacturing facility in Bokaro by facilitating the use of natural gas as a primary energy source.According to the company, the adoption of PNG will help enhance operational efficiency while also contributing to ..

Real Estate

09 Mar 2026

Bombay Realty Secures RERA for Three ICC Tower in South Mumbai

Bombay Realty, the real estate arm of Bombay Dyeing and part of the Wadia Group, has received Real Estate Regulatory Authority (RERA) certification for Three ICC – Wing A, the latest luxury residential tower at Island City Center in Mumbai’s Dadar.The RERA registration marks a key milestone in the development timeline and reinforces the company’s focus on regulatory transparency, timely project delivery, and high construction standards.Following the success of One ICC and Two ICC, the upcoming Three ICC tower represents the next phase of the Island City Center development. The project ai..

Infrastructure Energy

09 Mar 2026

Flender launches India’s largest wind gearbox test rig in Walajabad

Flender has inaugurated a 13.5 MW wind turbine gearbox test rig at its Walajabad facility near Chennai, marking the largest installation of its kind in India. The new facility is expected to strengthen the company’s manufacturing and testing capabilities while supporting the growing demands of the wind power sector in both domestic and global markets.The test rig was inaugurated on March 5 in the presence of Andreas Evertz, Group CEO, Flender; Lars Wiegemann, Vice President Wind Gears, Flender; and Vinod Shetty, CEO, Flender India, along with key industry customers and stakeholders.The insta..