Orissa shipyard project lands in uncertainty

The Rs 2,200-crore shipyard project proposed in Orissa by Oceanic Shipyard Ltd (OSL), a joint venture between the Apeejay Surrendra Group and Bharti Shipyard, 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 (DPCL), 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 a Rs 2,400-crore port in the area and has recently started the construction work of the port.

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, considered one of the pet projects of Chief Minister Naveen Patnaik due to its huge employment potential.

State-owned agency Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) had assessed the land requirement of the shipyard project at 1,400 acres. While 1,150 acres were to be allotted for developming the shipyard to the north of Dhamara, the remaining 250 acres were to be allotted for setting up ancillaries and support services at Chardia.

Sources said the government was in favour 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 materialise as DPCL did not agree to this proposal.

Earlier, the Defence Reserach and Development Organisation (DRDO), which possessed the land identified for the shipyard project, had agreed to move further north clearing the area for developing the shipyard if the parties agreed to share the cost of hifting its cables passing through the area.

With uncertainty delaying the project, the only option left for the government is to take a decision on the basis of the recommendations of the expert committee set up to suggest measures to resolve the contentious issues between the two companies. The expert committee, headed by special secretary of the transport department, had recently submitted its report to the government.

However, the state government hopes to arrive at an amicable solution soon. “We want both the projects to come up in the state and hope the land issue will be resolved,” a senior government official said.