First riverine port in state to be set up on Mahanadi near Paradip

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    riverine port
    OST Business Bureau
    Bhubaneswar, Oct 3:
    The Odisha government has planned to set up the first riverine port in the state in public private partnership (PPP) mode.
    The proposed riverine port would be set up at the Mahanadi river mouth near Paradip close to the operational facilities of Essar Steel Odisha Ltd and Indian Farmers Fertiliser Cooperative Ltd (IFFCO).
    Envisioned as a common user port for different industries, around Rs 500 crore will be invested on the proposed port in the first phase, sources in the Commerce and Transport department said. The government will go for techno-economic feasibility study for the riverine port once the location is finalized, the sources said.
    Meanwhile, the state government has decided to set aside clause requiring 70 per cent cargo handling during first phase operation to pave the way for the second phase expansion of Dhamra Port Company Limited (DPCL) at Dhamra in Bhadrak district. The decision was taken at a review meeting chaired by chief secretary JK Mohapatra two days back.
    The review revealed that the port authorities have proceeded for obtaining environmental clearance (EC) from the Ministry of Environment & Forest (MoEF) and other statutory clearances from the State Wildlife Board.
    It is to be noted that the government had put conditions, including 70 per cent capacity utilisation in Phase-I and obtaining clearances from MoEF, for the proposed expansion. However, the government had agreed in principle to relax the capacity utilisation norms for the Dhamra port keeping in view the curbs on iron ore exports.
    According to sources, DPCL in its first phase of operation, has handled 11 MTPA of cargo and has set up two berths. It has planned to set up 11 berths and handle 100 MTPA of cargo in its second phase expansion at an estimated cost of Rs 10,000 crore.
    While the company requires 800 acres of land, the government will provide land as per the thumb rule on land requirement of non-major ports suggested by RITES to allot around 50 acres of land for every million tonne of cargo handling capacity proposed by the developer. RITES has benchmarked land need for developers of non-major ports.