Phase-II expansion of the port, being taken up at an investment of Rs 10,000 crore, is set to add 75 million tonne capacity which will be over and above the port's existing capacity of 25 million tonne. The expansion is set to cost Rs 10,000 crore.
"We hope to start second phase expansion in two years. Our environment clearance is in advanced stage. Once we start expansion for the second phase, we will complete it in five years. Presently, we have two berths at the Dhamra port and full scale expansion will raise the berth strength to 13. After the second phase expansion, the port will be able to handle container cargo, liquid cargo, LNG (liquefied natural gas) and crude oil”, said Santosh K Mohapatra, chief executive officer of Dhamra Port Company Ltd (DPCL), an equal joint venture between Tata Steel and L&T.
On the state government's reservations over handing over of land to DPCL for Phase-II expansion, he said, “The state government never said they will not allot land to us. They have only sought some clarifications on routine issues. We have not been able to achieve full capacity utilization as iron ore exports have almost stopped. In this fiscal, we hope to handle 11-12 million tonne of cargo.”
Asked on buyout of the Dhamra port by Adani Group, Mohapatra said, “This matter can only be answered by the port promoters.”
"Allotment of additional land to DPCL for second phase development at this stage does not appear tenable. Further claim of additional land by DPCL shall be considered by the state government on the basis of a norm (thumb rule) being formulated”, G Mathi Vathanan, secretary (commerce & transport) - Odisha stated in a letter to Santosh K Mohapatra, chief executive officer (DPCL) of DPCL in November 2012.
The state commerce & transport department had also stipulated terms which DPCL needs to comply for being eligible for additional land.
First, the port has to achieve capacity utilization of 70% of Phase-I in accordance with clause 4.4 of the concession agreement. Second, it has to obtain environment clearance from Union ministry of environment & forests (MoEF) for the proposed expansion. Third, DPCL also has to get a no-objection certificate from the National Green Tribunal in the matter of expansion of port beyond the limits of the port.
