Prime Minister, Dr Manmohan Singh, on 2 July 2005 inaugurated the Sethusamudram Ship Channel Project works.

The function marked the beginning of dredging activity (first out of four segments) at Kodiakarai near Vedaranyam, about 300 km from Madurai. Dredging for this phase, totalling some 14 km,  is being done by Dredging Corporation of India.

The project envisages dredging of a ship channel in the shallow portion of the sea to connect the Gulf of Mannar and the Bay of Bengal through the Palk Bay.

The channel will save a distance of up to 424 nautical miles (about 785 km) and 30 hours of sailing time. The Centre estimates foreign exchange savings of up to Rs.215 crore in the first year of operation (2008-09).

The canal is estimated to cost Rs.2,427 crore, consisting of a capital cost of Rs.2,233 crore and a financing cost of Rs.194.40 crore. Of this, Rs.971 crore will be equity whereas Rs.1,456 crore will be debt portion.

(Picture Sethusamudram Canal inauguration function. Courtesy: www.sethusamudram.gov.in) 

Also See:

Sethusamudram Canal Project: Launch on 2 July (23-Jun-05)