___________

Update: Following is from a report in Business Standard.

… "The Ministry of shipping and highways has more or less agreed to bear 50 per cent of the cost of road and rail connectivity for the minor ports proposed in the state. The ministry had asked us to submit cost estimates for the same and accordingly, we had submitted Rs 1200-crore plan for offering road and rail connectivity for the upcoming minor ports", an official source told Business Standard.

According to the proposal, the cost of rail and road connectivity for the minor ports would be shared equally between the Centre and the port developers.

… 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 had already inked concession agreements with the developers for the development of ports at Dhamara, Gopalpur and Kirtania.

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.

Following is from a report in Business Standard.

Orissa has witnessed grounding of investment of Rs 4,262.44 crore from non-major ports in the past 10 years.

The investments have made four minor port developers- Dhamara Port Company Ltd (DPCL), Gopalpur Port Ltd (GPL), Creative Port Development Ltd and Navayug Engineering Ltd from 2002-03 up to the end of September this year. …

DPCL, a 50:50 joint venture between Tata Steel and L&T, is the biggest investor, with its investment till the second quarter of 2011-12 standing at Rs 3,570.35 crore.

The port developer, who has already begun operations, has invested Rs 762.79 crore, Rs 1,088.26 crore and Rs 1,059.40 crore in 2008-09, 2009-10 and 2010-11 respectively. In 2011-12, DPCL has invested Rs 60.45 crore till the end of September.

Gopalpur Port Ltd (GPL), a special purpose vehicle promoted jointly by Orissa Stevedores Ltd and Sara International Limited (SIL) has invested Rs 421.09 crore during 2007-08 to September-end of 2011-12. The port developer which is developing the seasonal port at Gopalpur into an all-weather port, has invested Rs 51.09 crore in 2007-08, Rs 30 crore in 2008-09, Rs 50 crore in 2009-10, Rs 40 crore in 2010-11 and Rs 250 crore in this fiscal (till September-end).

The state government has asked the port promoters to commission second phase of the port operations by March 2013. GPL has already claimed to have achieved financial closure of Rs 1,400 crore for the first stage of Phase-II of the deep sea port with the signing of loan agreement with a consortium of 11 banks.

The port at Subarnarekha river mouth, proposed by Chennai-based Creative Port Development, has seen investment of Rs 221 crore.

Creative Port Development had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006 for setting up a port with an initial capacity of 10 million tonnes per annum (mtpa) which was to be scaled up to 40 mtpa in 10 years.

The port developer had also entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.

The port at Astaranga in Puri district has witnessed an investment of Rs 50 crore over the past four years.

The port project is being taken up at a cost of Rs 6,500 crore. The initial capacity of the port will be 25 mtpa which will be eventually scaled up to 70 mtpa. The state government had entered into an MoU with Hyderabad-based Navyug Engineering Ltd on December 22, 2008.

The project proponent had signed a concession agreement with the state government in November 2010.

The six new ports are Kirtania (Balasore district), Chudamani (Bhadrak district), Dhamara (Bhadrak district), Astaranga (Puri district), Baliharchandi (Puri district) and Gopalpur (Ganjam district).

Following is a report from Sambada.

Following are excerpts from a report in Business Standard.

"The Government of India has announced a major policy initiative to offer Viability Gap Finding (VGF) for providing road and rail connectivity to the minor ports. As per this policy, the Government of India will bear 50 per cent of the cost for the road and rail infrastructure, the state government will provide 30 per cent while the remaining 20 per cent will be borne by the port developers”, G K Dhal, principal secretary (commerce & transport) said.

For the proposed port at Bichitrapur in Balasore district, the road connectivity would be between Jaleshwar and Bichitrapur while the rail connectivity would be from Digha to Bichitrapur.Similarly, for the port proposed at Subarnarekha mouth, also in Balasore district, the road connectivity is proposed between Basta and Choumukha whereas the rail connectivity would be from Haldipada to Choumukha.

The road connectivity for the Dhamara port in Bhadrak district has been envisaged from Jamujhadi on NH-5 to the port site. The rail link is being developed between Bhadrak and Dhamara.

… "The Orissa government has also proposed an industrial corridor on the Meramandali-Angul-Talcher-Chhendipada belt linking the coal mines, power plants and steel plants. Rail India Technical & Economic Services (Rites), the consultancy arm of Indian Railways, has submitted a draft feasibility report in this regard which is under the scrutiny of the state government. The Orissa government intends to form a Special Purpose Vehicle (SPV) for the purpose. This common corridor will be co-habited by multiple players and can be financed by participative funding”, he added.

Following is from a Business Standard report.

Chennai-based Creative Port Development Ltd, which proposes to set up an all-weather port at Subarnarekha Muhan in Orissa’s Balasore district, aims to achieve financial closure for the Rs 2187-crore project by June 2011.

The land acquisition process for the proposed port project is set to take off soon with notification under Section 4 (1). "The project needs 1215.43 acres of land for the port area and 1565.93 acres for the rail corridor. Notification under Section 4 (1) will be issued soon for land acquisition”, Sanjeev Sahoo, minister for commerce and transport, Orissa told reporters.

Out of the 1215.43 acres of land needed for the port area, 158 acres constitute Gochar land, 193 acres Bhudan land, 138 acres encroached land and the remaining 724 acres are free land. A high-level meeting chaired by the state Chief Minister Naveen Patnaik reviewed the status of ports proposed to be set up at Gopalpur and Subarnarekha.

Creative Port Development Ltd had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006, for setting up a port with an initial capacity of 10 million tonnes per annum (mtpa) which would be scaled up to 40 mtpa in 10 years.

The port developer had entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.

Creative Port Development had submitted the Environment Impact Assessment (EIA) application to the Orissa State Pollution Control Board on October 19 this year which has been forwarded to the Balasore district collector for conducting public hearing.

The Rehabilitation and Resettlement (R&R) package for the project is under finalisation. The proposed port is set to create direct and indirect employment for around 3,000 people.

Following are reports from Samaja and Dharitri. It says land has been selected in the Choumukh panchayat. The port, which was earlier referred to as Kirtania port, is now referred to as Subarnarekha port. The Samaja article mentions that for the port connectivity there will be a two lane road and rail lines between Haldipada and Choumukh. The Daharitri article mentions the rail points as Rupsa and Jaleswar. Both articles say that if things go as planned the port should be operational by 2014. This port is being made by Creative Ports of Chennai.

Update:Tathya has a recent report on who is pursuing which port. Following is a table based on that info.

Update: Following is an excerpt from a report in Hindu.

…“The Defence Research Development Organisation (DRDO) had objected to construction of a port at Inchudi which was close to test range at Chandipur”, Chief Secretary Ajit Kumar Tripathy said after holding a discussion with the DRDO personnel here on Frida y.

The state government, which was planning at least five ports in Balasore coast, had received green signal from DRDO for four other ports at Bahalpur, Chudamani, Chandipur and Kirtania. Only one port at Inchudi was objected to, he said.

Meanwhile, the state government had already signed MoU with a private firm for setting up a port at Kirtania. The DRDO objected to the port at Inchudi because it fell within the 50 km range of the test range at Chandipur. The state government, however, claimed that though the Revenue village at Inchudi came under the 50 km radius of the test range, the proposed port is located at its border and well outside the specified distance.

The state government’s argument was not accepted by the DRDO officials who attended the meeting and asked the administration to submit a detailed project report with the Defence ministry again before going ahead with the port proposal at Inchudi.

Following is an excerpt from a report in Pioneer.

The Ministry of Defence has raised objections to the ports like Enchudi, Chandbali, Kirtania, Bahabalpur and Chudamani. However, the State Government has raised objections to it. It has pointed the DRDO had passed the proposals in way back in 1996. The Government officials pointed out that it should have raised the objections at that time when the State submitted proposals for their clearance.

Meanwhile, a high-level team of Defence officials called on the Chief Secretary and discussed these issues. “We will soon sort out the problem. Efforts would me be made to keep the interest of the State,” said the team leader of the Defence officials. The State Government has already singed MoU for the Kirtania port.

Following is from a report in Telegraph.

Sajjan Jindal’s JSW Group is close to getting an approval from the Orissa government to build a port for its 10-million-tonne steel plant in Bengal.

The group has pitched for 4 out of the 12 bids offered by the Orissa government to investors for developing a port in the state.

Information trickling in from the government indicate that JSW may get the approval to build a port in Baleshwar district on the Bengal-Orissa border, south of Digha.

The port will cater to the upcoming steel plants in Bengal and Jharkhand.

Biswadip Gupta, joint managing director of JSW Bengal Steel Ltd, said the port would be closer to the project site than Haldia. “It will be about 110 km from our plant at Salboni in West Midnapur compared with a distance of 130 km from Haldia,” he said.

Note that there has been interest from others on a port in Kirtania. In particular, Creative ports signed an MOU about a port in Kirtania with Orissa government in 2006. Is JSW talking about a port in Kirtania or between Kirtania and Digha?

Following is from the PIB http://pib.nic.in/release/release.asp?relid=36480.

RAJYA SABHA

            The list of Ports where Railways are considering rail connectivity is given hereunder:

            The status of the proposals in Gujarat is as under :

Gujarat :

·         Gujarat Maritime Board had commissioned M/s. RITES for a feasibility cum traffic survey report for providing rail connectivity to Rozi & Bedi Port from Windmill Station in year 2003.  GMB has yet to approach Railways for rail connectivity.

·         Gujarat Maritime Board had commissioner M/s RITES for a survey to provide connectivity to Porbandar Port.  The report was submitted in June 2002.  GMB is considering constructing a rail link of 5.1 km from Porbandar to Porbandar Port at their own cost.

            This information was given by the Minister of State for Railways, Shri R. Velu in a written reply in the Rajya Sabha today.

Following is from a report in Telegraph.

Chennai-based Creative Port Development Private Limited today inked a concession agreement with the state government for sharing revenue from a Rs 2187 crore proposed deep-water, all-weather, mechanised port in Balasore.

The company, in December 2006, had signed an MoU with the government to develop the port on the Subernarekha river mouth at Kirtania in Balasore.

The first phase of the port with a handling capacity of 10MTPA has been planned to be commissioned by 2010 and ultimately its capacity would go up to 50MTPA by the 10th year.

As agreed, the company today signed the deal which enables the state to share revenue at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.

CPDL would enjoy the concession for a period of 30 years, extendable by an additional period of 20 years.

Following is an excerpt from a report in Business Standard. (Thanks to Deba Nayak for the pointer.)

… The company had signed an memorandum of understanding (MoU) with the Orissa government on December 2006. The port is proposed near the mouth of Subernarekha river and is estimated to cost Rs 2,000 crore.

According to state commerce minister Jaynarayan Misra, the company has made progress after the signing of the MoU. It has applied to the Centre for environmental clearance of the port project and has applied to the railway ministry for sanction of rail link.

However, the exact date of starting the construction work of the project can be known after the signing of the concession agreement, he said.

According to the provisions, the concession agreement needs to be signed within six months of the Mou. However, there has been a delay of about 4 months.

The company has sought 1,018 acre land for the port and 1,300 acres for the rail corridor. CPDPL will pay land premium as per the rates provided in the Industrial Policy Resolution-2007. However, the government is yet to provide any land to the company.

The minister said, the land acquisition for the project may not face much problem as the displacement of people will be minimal. Only eight families of the village Chaumukh will be displaced due to the project.

Official sources said, Kirtania port will come up on Build-Own-Operate-Share-Transfer (BOOST) mode. While the concession period will be 30 years, the government will have the power to extend it.

Dharitri has a nice overview (page1, page2, page3) of the status of the various ports that Orissa plans to have. Following are some highlights from that report.

• Aditya Birla group S.L. Mining has expressed interest in developing the Chudamani port in Bhadrakh district. IIT Madras has done the technical evaluation of this project. Page 1 of the article has more details.
• Navajuga engineering of Hyderabad has proposed developing Astaranga port in Puri district. Page 1 of the article has more details.
• Puri ports limited has proposed developing the Baliharchandi port in Puri district. Page 1 of the article has more details.
• Good earth maritime of Madras has proposed developing the port in Bahuda muhana of Ganjam district. Page 1 of the article has more details.
• Gopalpur: Being developed by Orissa Stevedores. Page 2 of the article has more details.
• Dhamara:TISCO and L & T are devloping this port. Page 2 of the article has more details.
• Jatadhari: Being developed by POSCO. Page 3 of the article has more details.
• Paradip: Existing major port. We discussed its expansion plans recently.
• Palur, Ganjam: no proposals yet
• Barunei, Kendarpara: no proposals yet
• Inchudi, Balasore: no proposals yet
• Chandipur, Balasore: no proposals yet
• Bahabalpur, Balasore: no proposals yet

The article says that the Balasore district ports face problems from the Dept. of Defense because of the missile testing range nearby. The article does not mention the following plan:

• Creative ports, Chennai plans to develop the Kirtania port on the mouth of Subarnarekha in Balasore district.