A captive deep-sea port proposed at Bichitrapur in Balasore district by Jindal Infrastructure Limited, a JSW Group company, has run into rough weather with concerns being expressed over its likely impact on the Subarnarekha river mouth.
The fact that another commercial port is proposed by Creative Port Development Ltd at Kirtania, located within 10-km radius of Bichitrapur, has also opened up debate about the feasibility of building two ports in close proximity.
“The water resources department has stressed on a detailed study on the impact of developing two ports on the Subarnarekha river mouth. It has called for study by an expert organization,” said a senior official of commerce & transport department.
The department had also sought the views of forest and environment department on building the proposed port at Bichitrapur.
While the forest and environment department has categorically stated that the port site is not a mass nesting area for Olive Ridley turtles, it has said sporadic movements of turtles have been noticed.
The Bichitrapur port had not made any headway after JSW Infrastructure announced to set up a Rs 2,238-crore captive deep sea port at that location, targeting cargo throughput of 10 million tonne per annum (mtpa) in the first phase.
The company was to invest Rs 550 crore in the first phase which was scheduled for commissioning by 2013. The port's cargo handling was projected to reach 20 mtpa in the second phase set to be operational by 2013 and 45 mtpa by 2020.
JSW Infrastructure was to invest Rs 750 crore and Rs 938 crore in the second phase and third phase respectively. The port was to handle cargo like coking coal, thermal coal, met coke, dolomite limestone, iron ore, finished steel products, bauxite, gypsum and clinker.
Out of the total investment of Rs 2,238 crore, JSW was to invest Rs 230 crore on land development, Rs 243 crore on berths, Rs 120 crore on breakwaters and embankments, Rs 900 crore on dredging and Rs 366 crore on handling equipment.
On the other hand, Creative Port Development Ltd had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006 for setting up a port at Kirtania with an initial capacity of 10 million tonnes per annum (mtpa) which was to be scaled up to 40 mtpa in 10 years.
The port developer had also entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.
