The Hyderabad based Navayuga Engineering Company Limited (NECL) today signed a memorandum of understanding (MoU) with the Orissa government for developing an all-weather, alongside berthing, mechanised port at Astaranga in Puri district at a total cost of Rs 6,000 crore
The port will be established in three phases. While the first phase will cost Rs 1500 crore, Rs 2000 crore will be invested in the second phase and Rs 2500 crore in the third phase. NECL intends to invest additional Rs 600 crore for development of a dedicated rail connectivity.
The cargo handling capacity of the port is projected to be 25 million tonne in the first phase, 35 million tonne in the second phase and 60 million tonne in the third phase. It is expected to generate direct and indirect employment for about 10,000 persons when fully commissioned. The first phase is expected to be commissioned in 4 years.
Pradeep Kumar Jena, secretary, commerce and transport department of the Orissa government and C V Rao, chairman, NECL signed the documents in the presence of the chief minister Naveen Patnaik in the state secretariat. The company will operate the port on Build-Own-Operate-Share and Transfer (BOOST) basis for a period of 34 years including 4 years required for the first phase construction.
It will share 5 percent of the gross revenue during the first 5 years from the date of commissioning, 8 percent from 6th to 10th year, 10 percent from 11th to 15th year and 12 percent for the remaining 15 years period. While the detailed concession agreement is to be signed in next 6 months, the concession period can be extended for additional 20 years.
During the first phase, the company will have 2 coal berths, one iron and steel berth and one multi-purpose berth along with a stack yard for minerals and commodities. Dredging up to 15 meters will be taken up during this phase.
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In the second phase, dredging up to 18 meters will be taken up with 2 additional berths for coal and POL or LNG along with a container terminal. Similarly, in the third phase, one container terminal, one iron and steel berth and one general cargo berth will be added. It may be connected either from Sakhigopal, Khurda or from Barang.
The port is expected to help in the development of engineering, port based and export oriented units and will be instrumental in the development of upstream and downstream industries. The company has sought 5000 acres of land and strengthening the existing access road from Astaranga to Pipili, as support from the Orissa government.
Speaking on the occasion, chief minister Naveen Patnaik said, the project is expected to generate annual revenue of Rs 20 crore for the state government during the first phase and Rs 100 crore per annum when the third phase will be completed.
The chief minister expressed the hope that the promoters of the port will work with the district administration and Idco to develop a port based industrial township along with an industrial park. This will ensure maximum multiplier effect for a balanced regional and social growth, Patnaik added.