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| Adhunik Metaliks plans 30 million tonne port at Barunei Muhan |
| Bishnu Dash / Kolkata/ Bhubaneswar Apr 15, 2009, 00:46 IST |
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Adhunik Metaliks, part of Adhunik group, plans to set up an all weather commercial port at Barunei Muhan in Kendarapara district of Orissa. It will be located near Jambu, 30 kilometres north of Gahirmatha.
The company made a presentation on its proposal before the chief secretary and other senior officials of the state government recently. The group has core competency in steel making, power generation, large scale mining and bulk material handling.
The port project will come up in phases and the total investment in the first phase is pegged at Rs 1684 crore, sources said.
Adhunik Metaliks has projected a cargo handling capacity of 10 million tonne by 2016-17, when the first phase of the project will be commissioned.
Similarly, the port handling capacity will increase to 20 million tonne by the end of the second phase which is slated in 2020-2021.It will have a cargo handling capacity of 30 million tonne when the project is fully commissioned. The cargo will mainly consists of coking coal, iron pellet export, thermal coal, semi-finished steel, and container, finished and raw fertilisers.
The company has indicated that 5.25 million tonne captive import cargo will be handled by the port by 2011-12.This will further increase to 9.5 million tonne by 2016-17 and will mainly consists of coking coal, scrap, thermal coal, dolmite and limestone.
Besides, the port will handle 1.25 million tonne captive exports cargo consisting of the finished steel and ferro alloys by 2011-12, which will further increase to 3 million tonne by end of 2016-17.Sources said, the proposed port will have a 13 metre draft and will have all the facilities for handling 80,000 to 1,00,000 DWT sized vessels.
The first phase investment is estimated at Rs 1684 crore, out of which equity component will be Rs 344 crore. While the company intends to mobilise Rs 350 crore in the form of public issue, Rs 309 crore will be mobilised from the internal accruals of the group. Besides, about Rs 681 crore is proposed to be raised in the form of debt.
Sources said, the company will require about 800 acres of land and 4 million gallons of water for the project. It has proposed to complete the first phase construction work after completion of 24 months from the date of handing over the land to the company, sources added.
It may be noted, Arcelor Mittal, the largest steel maker of the world, has evinced interest to set up a captive port at Barunei Muhan with a cargo handling capacity of 35 million tonne per annum (MTPA). Besides, SPI Ports, a division of Rs 1316 crore SPI group, has also evinced interest to develop a minor port in the same location with an investment of Rs 1550 crore.
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