The Orissa government may appoint a consultant of international repute to help it select a developer for the greenfield port at Barunei Muhan in Kendarapara district of Orissa.
The commerce and transport department has moved a proposal to the government for appointment of a consultant.
It has suggested that the state owned Industrial Infrastructure Development Corporation (Idco) may be asked to appoint the consultant and pay for it. The consultancy fee is proposed to be recovered from the developer later, sources said.
The parameters like previous experience in port construction, operation, financial strength, proposed port capacity and above all the state’s interest will be taken into consideration for selection of the developer by the consultant, sources said.
Meanwhile, the race for setting up of a port at Barunei Muhan has hotted up with four developers evincing interest. They are ArcelorMittal, Adhunik Metaliks, SPI Ports Ltd and the Chennai based Sical Logistics Ltd..
Arcelor-Mittal, the largest steel maker of the world, has proposed to set up a captive port at Barunei Muhan to the north of Mahanadi river near Paradip. It will have a cargo handling capacity of 35 million tonne per annum (MTPA) to be attained in two phases. However, the company has not indicated the quantum of investment for the port.
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Similarly, Adhunik Metaliks, part of Adhunik group, plans to set up an all weather commercial port at Barunei Muhan. The project will come up in phases and the total investment in the first phase is pegged at Rs 1684 crore. It will have a cargo handling capacity of 30 million tonne when fully commissioned.
SPI Ports, a division of Rs 1316 crore SPI group, proposed to develop a minor port in the same location with an investment of Rs 1550 crore. It will have 3 berths and container traffic facility in the first phase and the number of berths will go up to 12 in later phase. The company has assured to take the traffic handling capacity 41.79 million tonne per annum by 2021.
Besides, the Chennai based Sical Logistics Ltd. proposed to set up a deep water all weather commercial port at Barunei Muhan..The project envisages an investment of Rs 3600 crore in phases and will have a cargo handling capacity of 46 million tonne per annum (mtpa) when fully commissioned.