The construction of Subarnarekha port in Odisha
will begin soon as the defense ministry has given its clearance for the
project, Odisha government said on June sixth.
The mineral rich Odisha state has three major ports including the
government owned Paradip port besides the private ports of Dhamra and Gopalpur.
The port is strategically situated to evacuate
the industrial products of the mineral rich Jharkhand state. The products are
being evacuated through the congested Kolkata port system at present.
Chennai -based Creative Port Private Ltd (CPPL)
has proposed construction of an all-weather deep-draft commercial port at
Subarnarekha river, the Odisha government said in a statement released here.
Steel giant Tata Steel has signed an agreement with the Chennai firm to pick up
51 per cent equity in the port project from the original promoters, it said.
“Ministry of Defense has given the nod for
construction of a port on Subarnarekha river mouth on the Bay of Bengal in
Balasore district. Decks have been cleared for the project and the construction
will start shortly,” the statement said.
The proposed port project is located close to the
integrated test range site of the defense ministry at Chandipur near Balasore.
Earlier, the ministry had certain objections to the project, it added. The land
acquisition for the project is already over. The state government had handed
over 692.68 acre to the port developers.
Port-based industrialisation is a major thrust
area for the state with three ports already operational at Paradip, Dhamra and
Gopalpur. This port will spur faster economic development of northern Odisha,
Sanjeev Chopra, Principal Secretary, Industries Department, Odisha government
“Though 961.18 acre of land is required for the
port, the government has allotted 692.68 acre to the developers as about 128.8
acre of government land remains encroached. The Balasore collector has been asked
to evict the encroachers,” the state government said.
CPPL had signed an MoU with the Odisha government
on 18 December 2006 to develop the project. Later, the revenue sharing
agreement was inked between the two sides on 11 January 2008, it said. “The
Union ministry of environment and forests had accorded environment clearance to
the proposed port project in 2012, but it hit a roadblock with the defense
ministry raising objections. However, this hurdle is over with the defense
ministry giving conditional clearance,” the statement said.
According to the revenue-sharing agreement signed
originally, the port would have an initial capacity of 10 million tons per
annum (MTPA), which is to be raised to 40MTPA over 10 years, it added.