Paradip Port Trust, the first and only major port operating in Orissa on the east coast since last five decades, has proposed to set up a second port in the state.

It has zeroed in on Bahuda Muhan in Ganjam district for the project. Interestingly, the proposed site, one of the 14 locations identified by the state government for establishment of non major ports, had earlier attracted the notice of Jindal Steel and Power Ltd for a similar venture.

Mr AC Bose deputy chairman of PPT said that “We have sent the proposal to the state government and are waiting for the approval.” However, he refused to disclose the details of the project.

On the other hand, JSPL, which had evinced interest to set up a port at the same location, had proposed to construct it with a capital investment of INR 1,424.4 crore. The operational cost of running the port was pegged at INR 152 crore per annum.

The port site is located at a distance of 30 km south of the existing Gopalpur port and 18 km from Berhampur, the commercial hub of south Orissa.

JSPL wanted to develop the port as a captive project to meet the internal cargo movement requirement for the company’s steel and power plant coming up at Angul.

PPT is interested to construct the port as a sister venture.

Sources in government said that besides JSPL and PPT, several other investors, including couple of steel companies whose projects are in the pipeline in the state, have shown interest to develop a port at the same area.

Anticipating fierce competition from about seven other non major ports that will come into existence in the state by next five years, PPT has already announced to expand its current capacity.

(Sourced from BS)