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The Odisha government has entered into an agreement with Kolkata-based consultant Water and Power Consultancy Services (WAPCOS) for developing the first riverine port in the state.
WAPCOS will conduct a feasibility study for the port that will see an initial investment of Rs 500 crore. The project would be awarded through bidding.
The report on the feasibility study is expected by March 15. WAPCOS will be paid Rs 1.4 crore.
Though its exact location is yet to be finalised, the port is likely to come up at the Mahanadi river mouth near Paradip, close to the plants of Essar Steel Odisha and Indian Farmers Fertilisers Cooperative.
The riverine port has been envisioned as a common user port for several industries.
Since the riverine port has been planned at the Mahanadi river mouth, the commerce & transport department has urged the Odisha Industrial Infrastructure Development Corporation to not hand over of the adjoining land to Iffco and Essar Steel.
The riverine port is modeled on the one built on the Tapti river mouth in Gujarat.
Recently, Paradeep Port Trust (PPT) had evinced interest in setting up a satellite port, identifying Bahuda Muhan near Gopalpur in south Odisha as a suitable location. PPT was open to developing the port through the joint venture (JV) route with the state government. PPT was looking to ramp up its cargo handling capacity to 250 million tonne by 2020 from 106 million tonne presently.
The state government had identified 14 locations for development of non-major port projects. Of these locations, a deep sea port planned at Barunei Muhan in Kendrapara district has been shelved owing to threat to mass nesting site of Olive Ridley turtles.
Only two non-major ports at Dhamra and Gopalpur have commenced operations. Dhamra port, an equal JV between L&T and the Tatas has already seen grounding of investment of Rs 3600 crore in the first phase of its commercial operations that began in May 2011.
The port is awaiting environment clearance and land allotment to start its second phase operations. The port promoters had lined up Rs 10,000 crore for its second expansion plan that would upgrade capacity to 100 million tonne, from 25 million tonne currently.
Other locations identified for development of port projects include Jatadhari Muhan, Bichitrapur, Palur and Kirtania to name a few.
