Orissa government signed a concession agreement with Hyderabad based Navayuga Engineering Company Ltd for the development of modern deep water, all weather mechanized port at Astranga in Puri district on 30 years Build, Own, Operate, Share and Transfer basis in three phases at an estimated cost of INR 6500 crore.

The company will invest INR 1500 crore in first phase for the port with a capacity to handle 25 million tonne per annum of cargo. The port will have a capacity of 70 million tonne per annum at the end of third phase to export cargo like iron ore, thermal coal, coking coal, coke and break bulk cargo. While the phase-1 is expected to be completed in four years, the project in its entirety shall take about 8 years.

The state government signed the concession agreement, almost two years after concluding a MoU with the developer on December 12, 2008. Mr Chinta Sridhar MD of Navayuga said after signing the agreement said that “The detailed project report will be ready within a year.”

The state commerce and transport department secretary Mr Gagan Bihari Dhal, who signed the concessional agreement with Mr Sridhar of Navayuga told the ET that “The port will be operational within four years of land acquisition. It would reach 70 million tonne per annum in the third phase and for this dredging would be done up to 15.5 meters which could reach further to 20 meters.”

He said that the port would carter to ultimate vessel size of 175,000 DWT (dead weight tonnage).

The company would share with the state government its gross income with 5% share in the first five years, 8% in 6-10th year and 10% in 10th to 15th year. It would share 12% of share from income on 16th year when lease period ends, the concessional agreement said.

(Sourced from ET)