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L&T consortium to get Orissa port project

The Orissa government will shortly sign an agreement with International Seaports Ltd, a Larsen and Toubro consortium, to develop a new port at Dhamra, near Balasore, said Chief Minister J B Patnaik recently.

International Seaports Ltd is a joint venture of Stevedoring Services of the US, Precious Shipping Co of Thailand and Larsen and Tourbo.

Patnaik, who had visited Thailand, Indonesia and Singapore last week seeking investment in the state, said that a delegation from International Seaports will arrive in Bhubaneswar by the end of October to initial the agreement.

The state government had entered into a memorandum of understanding with the International Seaports earlier this year.

The port will be built over a 30 square kilometres desolate island called 'Kanika Sands', off the Dhamra coast. The projects's first phase, which envisages handling traffic of about 8-10 million tonnes, is likely to cost about Rs 12 billion, which includes constructing a 62-km-long road and rail network connecting the port to nearest town, Bhadrak. The cost of the road and rail links is pegged at Rs 3 billion.

According to sources, the project will be implemented on a 'Build, Own, Operate, Share and Transfer' (BOOST) basis. Though the state government will not have any equity in the project, it will claim 5 per cent on the port's turnover once it becomes operational, the sources said. The promoters, Patnaik said, have assured that the port will be operational by April 2001. With a draught depth of 60 ft, the port is expected to accommodate cape size vessels of 150,000 DWT.

The port, which will initially handle bulk cargo, will mainly cater to the needs of the hinterland of Bihar, eastern Madhya Pradesh, eastern Uttar Pradesh and Orissa.

Besides the port, International Seaports is also keen on setting up an industrial park at Dhamra over an area of 5,000 acres. The estimated investment in the park is pegged at Rs 20 billion.

The chief minister has refuted allegations of impropriety in awarding the port project to the Thai company through the MoU route instead of going in for international competitive bidding.

Compiled from the Indian media