The Government has accorded approval to the Cochin Port Trust for setting up an estimated Rs. 800-crore port-based Special Economic Zone (SEZ) at Vallarpadam / Puthuvypeen over an area of about 450 hectares.

Offical sources told here that on completion, the port-based SEZ would be the first of its kind to cater to the transshipment of mother vessels too, as currently transshipment of cargo takes place through Colombo Port.

They said that the project, proposed to be developed by the Cochin Port in association with the private sector, would also have amenities for establishing international container transshipment terminal, LNG terminal and international ship-repairing yard in order to cater to the various activities likely to be generated once the port-based SEZ, first of its kind in the country for transshipment of cargo goes on stream, they said.

An official Committee Chaired by the Commerce Secretary, Mr. Dipak Chatterjee, gave the approval, the sources said.

The Government today slashed the base price or tariff rate of the imported edible oils ranging from $50 to $65 a tonne for levying customs duty as part of steps to contain inflation.

Announcing the cut after an hour-long meeting with the Prime Minister, Dr. Manmohan Singh, the Finance Minister, Mr. P. Chidambaram said, "I am confident this (base price cut) will be reflected in prices."

In the case of crude palm oil, the base price was reduced to $54 a tonne from $504 and for crude soyabean oil, it was cut to $565 a tonne from $628 a tonne, he told reporters.

The base price of RBD palm oil has been reduced to

$489 a tonne from $543 a tonne and that of RBD palmolein to $497 a tonne from $552 a tonne.

He said the customs duty on all imports of edible oils could be paid 50 per cent by DEPB scrips and the remaining in cash.

Today’s meeting, where Mr. Chidambaram was accompanied by the RBI Governor, Dr. Y.V> Reddy, has come ahead of the meeting of the Cabinet Committee on prices on Friday.

Reuter reports: The last revision on palm oils was made last November. For crude soyaoil, the base price was last changed in May 2004.

Traders said the move would have a sobering effect on domestic prices and increase the availability of cooking oil.

The net impact on domestic prices would depend on how the palm oil market in Malaysia nd the soybean oil trade in Argentina reacted to the decision, they said. "But as of today, there is a very remote possibility of Malaysia increasing its palm oil prices as there was not much demand for oils from Europe, China or India" said Mr. Govindhbhai Patel, a groundnut trader.