Statesman News Service reported that Navayuga Engineering Company Limited signed a MoU with the state government to establish a mechanized port at Astarang in Puri district with an investment of INR 6,000 crore.

The revenue sharing with the government has been fixed at 5% for the first 5 years, 8% from the 6th to the 10th year, 10% from 11th to the 15th year and 12% for the remaining period of 15 years. The MoU has a provision of 30 years concession period which can be extended by another period of 20 years. A detailed concession agreement is to be signed within 6 months.

Mr CV Rao chairman of Navayuga Engineering Company Limited inked the MoU with Mr PK Jena secretary commerce and transport department in presence of Mr Naveen Patnaik CM of Orissa and his cabinet colleague Mr Jayanarayan Mishra and others.

Mr Rao said that "The port with a projected capacity of 60 million tonne per annum will be developed on build, own, operate, share and transfer basis for a period 34 years including 4 years construction period."

He said that it will come up in 3 phases 25 million tonne per annum capacity in the first phase entailing investment of INR 1500 crore, the second phase will enhance the capacity to 35 million tonne per annum with pumping in of another INR 2000 crore and the third phase with investment of another INR 2500 crore will help achieve the total capacity of 60 million tonne per annum.

He said that "In its first phase four berths and one stock yard for minerals and commodities will be constructed while two berths and one container terminal in phase-II and two more berths and another container will be built in phase-III."

As per report, the port will be linked by road and rail either from Sakhigopal or from Barang with an estimated cost of INR 600 crore.

(Sourced from Statesman News Service)