The State Government has rejected outright the proposal of the Jindal Steel and Power ltd (JSPl) to acquire 49 per cent of stakes in the Gopalpur Ports ltd (GPl).
“The Government has taken the decision not to allow the JSPl to acquire 49 percent of share in the Gopalpur Ports ltd following a recommendation of the law Department,” said Minister of Commerce and Transport Subrat Tarai on Friday. He said the JSPl’s proposal was referred to the law Department for examination and the department categorically said that no change of shareholding of the GPl could be executed within three years of the commission of the port operation. “The proposal is also violating the terms of concession agreement signed with the original promoters,” Tarai said. The GPl started its commercial operations last month with a small South Korea vessel shipping 7,500 tonnes of ilmenite, a product of the Odisha Sands Complex, a unit of the India Rare Earths ltd, Gopalpur.
The Minister said the GPl is being operated and managed by a consortium formed by the Odisha Stevedores limited (OSl) and Delhi-based Sara International limited (SIl). The OSl holds 50.5 per cent stake and the SIl 49.5 per cent. Tarai said the JSPl had in 2010 had applied to the Government for allowing a change of shareholding of the GPl by allowing it 49 per cent stake initially which might increase up to 60 per cent. “As per the pact, the original promoters would retain at least 51 per cent share for at least three years from the date of start of the commercial operation of the port,” he said.