The work on the proposed all weather port to be built by Creative Port Development Private Ltd (CPDPL) at Kirtania in Balasore district, which has been hanging fire due to legal tussle between the promoters and venture capital investors of the company, is expected to take off shortly following verdict of the Company Law Board (CLB) in favour of the promoter shareholders.
The promoter directors of CPDPL have already communicated the development to the Orissa government and assured to expedite work on the port project, official sources said.
Though the Orissa government had signed a memorandum of understanding (MoU) with the company in 2006, there was no progress on the project due to differences among the promoter shareholders and the venture capital investors. CLB, Chennai office, in its final order on 27 May 2009, has directed SREI (the venture capitalists) to transfer its share and other interest to the promoter shareholders at a consolidated price of Rs 52.5 per share or at a fair value as on 31 March 2008, which is higher.
The fair value, CLB stated, will be decided by an independent expert valuer to be appointed by the bench. The CLB further directed the respondents namely SREI Venture Capital Ltd, SREI Infrastructure Finance Ltd and others to reimburse 30 percent benefits of Machilipatanam port to CPDPL, CLB said, the promoter shareholders will keep SREI informed about any major developments pertaining to the Kirtania port project every month within 7 days of the following month, till completion of the whole exit formalities. It also directed the promoters to re-constitute the board of Creative Port, in exclusion of the SREI nominee.
Meanwhile, following the CLB order, the promoter shareholders have re-constituted the board of CPDPL on 29 May with induction of three independent directors. A special purpose company (SPC) namely Subernarekah Port Private Ltd has already been formed to implement the Kirtania port project. Sources said, the company has applied to the Orissa government for subrogation as required under clause 2.4 of the concession agreement signed with the government.
