JSPL replaces SIL in SPV to develop Gopalpur port

The New Delhi-based Sara International Limited (SIL) has left the consortium constituted to set up an all-weather private port at Gopalpur in Orissa’s Ganjam district. SIL held 50 percent stake in Gopalpur Port Ltd (GPL), the special purpose vehicle (SPV) developing the port project, with rest 50 per cent vested with Orissa Stevedores Ltd (OSL).

The company, meanwhile, has been replaced by Jindal Steel & Power Limited (JSPL) in the SPV. In the restructured SPV, JSPL will hold 60 percent stake with OSL’s holding coming down to 40 per cent.

JSPL, which is setting up a six million tonne steel plant near Angul, had earlier proposed to set up a captive port at Bahuda Muhan, also in Ganjam district, on its own at a capital cost of Rs 1424.4 crore.

The operational cost of running the port would be to the tune of Rs 152 crore per annum.

With this development, two of the original promoters of Gopalpur port have quit the consortium in last one and half years.

Earlier, Hong Kong-based Noble group had withdrawn from the SPV in May, 2010.

The Orissa government had awarded the job of developing the existing minor port at Gopalpur into an all-weather non-major port to GPL, a consortium of three companies- OSL, SIL and Noble group on BOOST basis in 2008.

“We have already apprised the Orissa government about the new Development (exit of SIL)”, said Manmohan Moharana one of the directors of GPL. “With the entry of JSPL, we expected the work on the port project would be expedited”, he added.

JSPL which has several steel and power projects in Orissa, Chhatisgarh, Madhya Pradesh and other states has captive cargo of around 20 million tonnes per annum.

“The captive cargo of JSPL will be the guaranteed cargo for the Gopalpur port to handle, when it is developed as an all-weather port”, he added. The operation of the existing minor port at Gopalpur has been stalled for last two years to facilitate construction work.

However, construction work could take off only last month due to delay in obtaining environment clearance from the Union ministry of environment & forests (MoEF).

The company authorities expect to start handling cargo in the next year, Moharana said. GPL, the second biggest non-major port investor in the state after Dhamara Ports Company Ltd (DPCL), has invested Rs 421.09 crore during 2007-08 to September-end of 2011-12.

GPL has invested Rs 51.09 crore in 2007-08, Rs 30 crore in 2008-09, Rs 50 crore in 2009-10, Rs 40 crore in 2010-11 and Rs 250 crore in this fiscal (till September-end).