L&T-Tata Steel port to tie up funds by March

The Rs 2,000 crore Dhamra Port, developed by Larsen & Toubro and Tata Steel in Orissa, is likely to reach a financial closure by March 31, 2006.

Dhamra Port Company chief executive officer S K Mohapatra said the port was in final round of talks with investment bankers and financial institutions and the financial closure was expected before March end.

"We have secured environmental clearance and the port will be operational by December 2008," Mohapatra said on the sidelines of a 'Ports of India' seminar organised by Delhi-based Indian Infrastructure.

Dhamra Port is a deep water port developed on a 34 year concession from Orissa government by Dhamra Port Company on a build-operate-own-share-and-transfer (BOOST) basis.

The port is developed in two phases and would handle 15 million tonne of cargo under Phase I programme, which can be enhanced to 25 million tonne capacity without much investment.

The channel depth at the port would be 18 metres which could accomodate Super Capesize vessels with more draught.

About the allegation by environmentalists on endangering Olive Ridley sea turtles during the mass nesting and monitoring nesting patterns while construction of the port, Mohapatra said the port channel was located at different site.

"Under Phase I, the port will be having 2 dry bulk berths and 1 steel berth. The second phase will be having 4 container berths and several liquid cargo berths," Mohapatra said.

About the competition posed by Posco Port, Paradip Port and Gopalpur Port in the state, Mohapatra said Dhamra Port was equipped to take on the competition and it is already in talks with prospective companies for tying up cargo.

"We will tie up at least 15 per cent of estimated cargo to be handled at port. Moreover, Orissa state had signed at least 45 memorandums of understanding for steel plants. Even Jharkand and Chhatisgarh have also signed for steel plants," Mohapatra added.