Home >Companies >People >Navayuga to build port worth Rs6,500 cr in Orissa

Bhubaneswar: Orissa government on Monday signed a concession agreement with Navayuga Engineering Company to set up a port with a capacity of 25 MTPA, at an investment of Rs6,500 crore in Puri district.

The state government signed the concession agreement, almost two years after concluding an MoU with the Hyderabad - based developer Navayuga on 12 December , 2008.

“The port will be developed at Astarang in Puri district. The detailed project report (DPR) will be ready within a year," Navayuga’s managing director Chinta Sridhar said after singing the agreement.

The port would be operational within four years of land acquisition, commerce and transport department secretary G B Dhal said.

Astaranga Port would be full-fledged all weather multi-user port on BOOST (build, own, operate, share and transfer) basis, he said.

Though the initial capacity of the port will be 25 MTPA, it would reach 70 MTPA to export cargo like iron ore, thermal coal, coking coal, coke and break bulk cargo.

In the initial phase, dredging would be done up to 15.5 meters which could reach further to 20 meters, commerce and transport minister Sanjib Sahoo said.

The port would carter to ultimate vessel size of 1.75 lakh DWT (dead weight tonnage), he said.

The company would share with the state government its gross income with 5% share in the first five years, 8% in 6-10th year and 10% in 10th-15th year. It would share 12% of share from income on 16th year when lease period ended, Dhal said.

Astaranga Port project, which would generate a large number of direct and indirect employment, would have service corridor of 90-km long rail and road.

While minimum 90% of the total requirement of unskilled and semi skilled manpower would come from locals, the port developer would take 60% of local people in skilled category, they said.

Similarly, a minimum of 30% of supervisory and managerial level would be drawn from locals and it was allowed to hire senior executives from open market, Dhal said.

The state government has already signed concession agreements with three other companies to develop port facilities at Gopalpur, Dhamra and Kirtania, sources said. While Gopalpur port has already been operational, Dhamra Port would be ready in next few months.

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