BS reported that the INR 2,200 crore shipyard project proposed in Orissa by Oceanic Shipyard Ltd a JV between the Apeejay Surrendra Group and Bharti Shipyard Limited has been pushed into uncertainty due to delay in handing over the requisite land for the project.

The delay is attributed to objections raised by Dhamra Port Company, which feels its future expansion will be threatened if the land to the north of the port is handed over to OSL. DPCL is building INR 2,400 crore port in the area and has recently started construction work.

In order to resolve the issues related to use of land and port facilities, OSL and DPCL officials have met several times over the last few months but to no avail. It is now left to the government to take a final call on the issues to decide the fate of the proposed shipyard.

Industrial Promotion & Investment Corporation of Orissa Ltd had assessed the land requirement of the shipyard project at 1,400 acres. While 1,150 acres were to be allotted for developing the shipyard to the north of Dhamra, the remaining 250 acres were to be allotted for setting up ancillaries and support services at Chardia.

Sources said the government was in favor of allotting 425 acres to DPCL and the remaining 519 acres to OSL, out of the total available 944 acres to the north of Dhamara. However, the arrangement failed to materialize as DPCL did not agree to this proposal.

(Sourced from Business Standard)