Several major investors have shown interest to invest in construction a riverine port on the mouth of river Mahanadi. The proposed port will come up at Akhadashili village in Mahakalpada block of Kendrapada district at a cost of Rs 2,110 crore.
The proposed location is adjacent to industrial sites next to National Highway-5(A) and on the right bank of the Mahanadi river with rail connectivity being only 6 km to Haridaspur-Paradip rail corridor.
This port will be taken up on PPP mode and four major investors have shown interest. The State Government in the Department of Commerce and Transport, in order to invite investors, had floated a Request For Qualification (RfQ).
Big investors like Hindustan Ports Private limited, Adani Ports and SEZ limited, Essar Port limited and Navayuga Engineering Company limited have been shortlisted for the RfQ purpose.
These major investors have shown interest and participated in the process of RfQ and have been shortlisted, said sources in Department of Commerce and Transport (DoCT).
Principal Secretary G Srinivas accelerated the process and now investors are eager to invest in the port sector, said sources.
The riverine port project would cater to the needs of mineral-rich Odisha, as well as Jharkhand and Chhattisgarh. It will be a common user port for various industries and mines in these States. While iron ore and pellets, raw fertilizer, alumina and raw crude oil will be imported through the port, finished crude oil, steel and steel products, chromite, mineral sand and bauxite would be shipped out.
The proposed project has been found to be technically feasible and financially viable with an expected return of 14.36 per cent, said a senior official of DoCT.
In the first phase, at least two berths of 250 meter each for handling 18.43 million tonne per annum cargo will be set up. Additional four berths of 250 meter will be set up in Phase II for handling 27.45 MTPA. In the first phase, 175 hectares of land is required, which is yet to be acquired.
300 hectares would be needed in the phase II. The proposed port will have rail and road connectivity from Paradip, which is fast emerging as an industrial hub.
Concession will be provided for a period of 34 years out of which maximum four years will be given for construction. And this will be extended for another 20 years in two phases i.e. 10 years each, said sources.
The proposals of these investors have been recommended for consideration of RfQ by the High level Clearance Authority (HlCA) for In- Principle approval to the project, transaction structure, bidding documents and issuance of RfP.