Dahej solid-cargo port to be operational by 06-end

Petronet, Adani group to invest Rs 450 crore

The proposed solid-cargo port at Dahej in Bharuch district of Gujarat is expected to be operational by end of 2006.

The two stake holders of the port, Petronet LNG Ltd, a consortium of oil PSUs along with foreign oil companies, and the Ahmedabad-based Rs 5,000 crore Adani Group are expected to pump in Rs 450 crore for developing the port.

The development work (which is a part of the conditions of agreement between Petronet LNG and Gujarat Maritime Board (GMB), the nodal agency for port activities in the state), will commence by the first quarter of the next fiscal following feasibility and oceanographic studies.

"We expect to sign the concession agreement with the GMB during January, 2004 for development of the port and after the required studies, the work should be kicked off during the first quarter of the next fiscal year. As on August 27, last year, we issued the letter of intent to the Adani Group for development of the port, rest of the works in the front will be handled by them as they are the majority stake holder in this solid-cargo port," said P Dasgupta, director (Finance) of Petronet LNG, which on Monday 'mechanically' commissioned its regassified Liquid Natural Gas (LNG) terminal at Dahej in Bharuch on Monday.

The Adani Group, through its wholly-owned subsidiary, Adani Exports Ltd (AEL) holds 74 percent stake in the port project while rest 24 percent stake is held by the Petronet LNG.

"Following the signing of the concessional agreement with GMB, a special purpose vehicle will be formed to handle the development and operations of the port. Adani Group, which is already very much into the port activities with its Mundra port in Kutch district will use its expertise in development of this port also as in the close proximity of the proposed site, a state-of-the-art chemical port is located and operational," said a source in AEL.

According to the source, this port will be constructed keeping in mind the requirements of berthing huge Capesize vessels and will have initially a capacity of handling three million metric tonne of commodities per annum.

The port, located strategically will primarily cater to the hinterland of south and central part of Gujarat and also western Madhya Pradesh.

Dahej already offers distance advantages to its primary hinterland customers, over competing ports in the region of the country.

The award of letter of intent to the Adanis by the Petronet LNG will also open up new vistas in the area of port development with Adani focusing on bulk terminal and Petronet on its LNG terminal.

The first initiative of the Group, Mundra port, which is also the first private port in Gujarat handled total cargo projection of 5 million tonnes at the end of the last fiscal year and expected to record better performance by end of the current fiscal year.

With the deepest draft on the western coast, the port was first in the country to have directly berthed a Capesize vessel in the month of August, last year with a load of 122000 DWT.