Ispat Industries has decided to expand the capacity of its captive jetty, Geetapuram Port, in Maharashtra from 3.5 million tonne to 8 million tonne.
The port is currently restricted to lighterage vessels. The company has also acquired 100 acres of land for its storage yard.
The steelmaker has mandated Tata AIG Risk Management Services and the National Institute of Oceanography to conduct an environment impact assessment (EIA) study required for the proposed expansion. The engineering-cum-design study would be conducted by STUO Consultants.
A Khinvasara, director (business development), said, "With all infrastructure available, an additional investment of only Rs 10 crore is required for the proposed expansion."
"Currently, the port enables our steel project save close to Rs 50-60 crore per year and post expansion it will further add directly to the company's bottomline," he said.
The company was previously looking at bringing in a strategic partner, but has now decided against it, Khinvasara said.
"We have requested the Maharashtra government for some more dredging in the channel that would increase the draft length to 6 metres which can reach up to 10 metres in high tide and service barges up to 9000-10,000 deadweight tonne (Dwt)," Khinvasara said.
The port was initially 450 metres long. But, looking at the increasing potential of the region, Ispat is planning to expand its present jetty by another 250 metres, build a spillway of 50 metres and the liquid cargo jetty of 80 metres. Two barge unloaders of 675 MT/hour will be joined by an Italian unloader of 900MT/hour capacity in 2002.
According to analysts, the move is primarily in line with the company's attempt to stay afloat at a time when the steel industry is going through a rough patch.
Ispat had set up the captive jetty in 1993 to handle iron ore for its sponge-iron project. The jetty situated at the banks of Amba river opens into the Dharamtar creek in the Arabian sea.
