In its presentation, the company argued that a port in Chudamani is feasible and being a captive port, Chudamani will not affect the commercial interest of the Dhamra port which is a general multi-user commercial port.
Besides, the company maintained that the development of the Chudamani port will not violate the clause 3.5 of the Dhamra Concession Agreement.
"Orissa government will reconsider the Essel Mining's proposal for developing a captive port at Chudamani taking the opinion of the law department", commerce and transport minister Jaynarayan Misra told the media persons.
A team of company officials led by Ravi Kastia, Business head, Aditya Birla Group made a presentation before the chief minister requesting the state government to approve the company's proposal for the development of the Chudamani captive port.
Clause 3.5 of the Dhamra Concession Agreement that the Orissa government signed with Dhamra Port Company Ltd (DPCL) states that the government can grant a facility for another port to a private partty or develop by itself, within 25 kms on either side of the outer limits of the port on the same terms and conditions contained in this agreement, only when the Dhamra Port is fully utilised and no further expansion of this port is possible.
It was cited as the major constraint for obtaining the approval of the proposal of Essel Mining. Quoting the legal opinion, the company stated that boundaries of Dhamra port may be considered as defined under 1931 notification for the purpose of the clause 3.5 of the concession agreement rather than 1998 notification.
It also quoted legal opinion stating that the objective of having the distant restriction in clause 3.5 of the concession agreement meant only not allowing another general multi-user port within 25 kms.
The company stated that Chudamani is a captive port having different terms and conditions and it will be used to handle the group's cargo which will be loaded from ports in other states.
Though the company proposed for seting up a captive port at Chudamani in September 2005, the proposal was not accepted due to the opinion of the state law department.The law department opined that going ahead with the port project may be violative of the clause 3.5 of the Dhamra Concession Agreement.
The Essel Mining proposed to develop a captive port under the consortium of Aditya Birla Group companies for the movement of cement, aluminium, iron ore, thermal coal, limestones, gypsum, clinker and copper. It will have a cargo handling capacity of 2 million tonne initially to be enhanced to 10 million tonne over a period of time.
An estimated Rs 1500 crore is proposed to be invested in the port in the first phase.The company intends to complete the project within 18 months from the date of the signing of the concession agreement. Investing in the port sector of the state figured in the discussion of the Aditya Birla Group chairman Kumar Mangalam Birla with Patnaik recently.
