Odisha government nod for second phase bidding for riverine port

BHUBANESWAR: The empowered committee on infrastructure of the State Government on Monday gave its approval for second phase tendering process for the first river port at the mouth of Mahanadi.The committee meeting chaired by Chief Secretary AP Padhi approved the shortlisted companies after the first phase bidding. Four major port developing agencies - Hindustan Ports Private Limited, Adani Ports and SEZ Limited, Essar Port Limited and Navayuga Engineering Company Limited - have qualified in the request for qualification (RFQ).

Padhi directed the Commerce and Transport Department to complete the second phase bidding process (request for proposal) by August and issue letter of award by October 2018. He further directed the department to develop infrastructure facilities like road and rail connectivity to the port and plan development of port-based industrial complex.

The port is planned on Mahanadi river at Akhadasali village in Mahakalpada block of Kendrapara district at an estimated cost of Rs 2,110 crore. The land requirement of the proposed port is 300 hectares. In the first phase, 175 hectares will be required, official sources said. The land will be provided by the State Government to the concessionaire on lease, the charges of which will be detailed in the draft concession agreement, it added.

The cargo potential of the port is pegged at about 46 million tonne per annum (MTPA).  Implementation of the project is planned on build, own, operate, share and transfer (BOOST) model.The project has been found technically feasible and financially viable with an expected return of 14.36 per cent. The port will be developed in two phases. In the first phase, at least two berths of 250 metre each will be set up for handling 18.43 MTPA and in the second phase, additional four berths of 250 metre each will be set up for handling 27.45 MTPA.

The port will be designed to cater to the needs of mineral transport from Odisha, Jharkhand and Chhattisgarh. It will be a common user port for various industries and mines in these States. It will handle iron ore and pellets, raw fertiliser, alumina, raw crude oil, finished crude oil, steel and steel products, chromite, mineral sand and bauxite.