Monday Nov 18, 2024
Monday Nov 18, 2024
Thursday, 2 May 2024 03:18 - - {{hitsCtrl.values.hits}}
In a significant development aimed at revitalising maritime infrastructure, the Cabinet of Ministers approved the signing of a Memorandum of Understanding (MoU) to obtain a proposed financial grant from India for the renovation of the Karainagar Boat Yard.
The decision follows the clearance received from the Attorney General for the MoU, which will facilitate the receipt of the proposed financial grant from India. Additionally, approval from the Foreign Affairs Ministry has been secured, further advancing the process.
“With the necessary approvals in place and support from the Indian Government, the renovation project is set to move forward, bringing renewed vigor to the boat yard and fostering economic growth in the region,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said on Tuesday at the post-Cabinet meeting media briefing.
Established in 1967 with the assistance of the Norwegian non-governmental organisation NGU, CEY-NOR Foundation Ltd., has played a pivotal role in fiberglass boat production in Karainagar, Jaffna. Despite facing challenges and discontinuing operations at the Karainagar boat unit in 1990 due to prevailing conditions, the foundation has remained dedicated to its mission.
A significant investment of Rs. 350 million was made in 2016 for the renovation of the boat yard. However, due to financial constraints, essential civil works and machinery procurement remained incomplete. Recognising the importance of this project, the Indian Government has agreed to provide a financial grant of up to Rs. 290 million to support the completion of the renovation and other associated works.
The project has received approval from the National Planning Department and the Foreign Resources Department, underscoring its significance and potential impact on the region’s maritime sector.
The proposal to this effect, submitted by Fisheries Minister Douglas Devananda garnered approval from the Cabinet of Ministers.
