The Orissa government, which has identified 14 potential sites for the development of minor ports, is going to present a proposal to the Government of India wherein the cost of rail and road connectivity for the minor ports would be shared equally between the Centre and the port developers.
Earlier, the state government had requested the Union ministry of shipping to introduce a policy so as to provide rail and road connectivity to the minor ports as in the case of major ports.
The ministry, which had constituted a committee for this purpose, had come out with a cost sharing formula according to which the cost for developing rail and road connectivity for the minor ports would be shared between the Centre, the Orissa government and the port developers in the state in the ratio of 50:30:20.
However, the Orissa government is unlikely to share the cost of developing the rail and road infrastructure for minor port projects.
"It would be difficult for us to bear the expenditure for developing the rail and road infrastructure for minor port projects. Therefore, we have decided to approach the Centre and ask them to share the cost equally with the minor port developers”, an official source told Business Standard.
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For Dhamara Ports Company Ltd which has almost developed the rail link for its port project, the cost will be adjusted against the concession fees to be paid by the developer.
Among the 14 locations identified by the state government for the development of ports are Dhamara, Jatadhari Muhan, Barunei Muhan, Astaranga, Bichitrapur, Chudamani and Kirtania to name a few.
The state government has already inked concession agreements with the developers for the development of ports at Dhamara, Gopalpur and Kirtania. In-principle approval has also been given by the state government to Posco India for the establishment of a captive port at Jatadhari Mhan.
The Orissa government has also signed MoUs (Memorandum of Understanding) with the Hyderabad-based Navayuga Engineering Private Ltd and Aditya Birla Group for setting up of ports at Astaranga and Chudamani respectively.
Besides, many entrepreneurs have also evinced in development of ports in the potential locations identified by the state government.
