The shipping ministry has asked the Orissa government for alternative sites to locate a transloading facility of Kolkata Port Trust.
Orissa believes transloading at Kolkata threatens the business of Dhamra port. Dhamra has an exclusivity agreement with the Orissa government, according to which no port facility can be created within 25 km.
In its opinion to the shipping ministry, the law ministry has said all coastal waters belong to the central government and a state government has no jurisdiction over the water that surrounds its land.
The issue of locating a transloading facility has landed in the Orissa High Court. The central government does not want to create a centre-state discord by taking the legal route and has decided to adopt a consultative approach.