NEW DELHI, May 19: India’s cabinet approved on Thursday a project to dredge a key shipping route between the Arabian Sea and the Indian Ocean, prompting concern from Sri Lanka. “It opens up a channel that will enable ships to avoid going around Sri Lanka,” Finance Minister Palaniappan Chidambaram told reporters. The 167 kilometre-long Palk Straits separates India’s southern Tamil Nadu state from the northern tip of Sri Lanka.

Sri Lankan ports minister Mangala Samaraweera said the island nation was concerned about India’s plans to dredge the shallow sea bed. “We are concerned and have appointed a high-level committee to study the implications for us,” the minister told reporters in Colombo just hours ahead of India’s announcement. Sri Lanka had earlier proposed a road bridge spanning some 18 kilometres to link to the two countries at their closest point.

The Sethusamudaram Ship Canal project is estimated to cost 24.3 billion rupees (564.5 million dollars) and will be funded by the federal government, port authorities and state-run Shipping Corporation of India, Mr Chidambaram said. The project will also sell 2.26 billion rupees worth of shares to investors, he said.

The Indian finance minister said the project would not only be beneficial for trade by cutting ship travel time by 30 hours, but also help in security and anti-smuggling operations. The project is expected to start in July and be completed within four years, he said. —AFP