Orissa to notify Talsara as 14th port site

The Orissa government has identified one more site along its long coastline for the development of port in the PPP (public private partnership).

A proposal of the commerce and transport department (C&T) to notify Talsara in Balasore district as a port site has been sent to the law department for vetting. The required notification will be issued after the clearance of the law department, sources said.

Interestingly, this will be the 14th locations notified by the state government for development of non-major port in the state. Earlier, as per the port policy announced by the Orissa government in 2004, thirteen locations were notified for the development of ports. These locations were Goplapur (Ganjam district), Bahuda Muhan (Sonepur) in Ganjam district, Palur (Ganjam), Bali Harchandi (Puri), Astaranga (Puri), Jatadhari Muhan (Jagatsinghpur), Barunei Muhan (Kendrapara), Dhamra (Bhadrakh), Chudamani (Bhadrakh), Inchuri (Balasore), Chandipur (Balasore), Bahabalpur (Balasore), Subarnarekha mouth (Kirtania) in Balasore district.

Sources said, the comments of the director ports and inland water transport were sought as to whether the Kanika Sands will come within the area of the proposed port site before going ahead with the proposal.

Since, the director has given the report stating that Kanika Sands is not coming within the area proposed to be notified for development of a port in that location, the department has moved the matter. The chief minister Naveen Patnaik has already given his concurrence to the proposal.

The move for notification assumes importance as JSW Infrastructure Limited (JSWIL), part of O P Jindal group, having interest in steel, aluminium, cement, power, minerals and infrastructure, has proposed the Orissa government to develop a deep water port at Bichitrapur (Talsara) in Balasore district at an investment of Rs 2400 crore.

The company had submitted the techno-economic feasibility report (TEFR) to the commerce and transport department last year.

As per the projections made by the company, the proposed port will handle the captive cargo of the two greenfield steel plants of 10 million tonne per annum each being set up by the Jindal group in neighbouring states of West Bengal and Jharkhand.

Both these projects will require the movement of 32 million tonne iron ore, 3 million tonne lime stone and 20 million tonne coal per annum.

Besides, the proposed port will handle 10 million tonne of finished steel. Taken together, the total traffic of the company is estimated to be 65 million tonne per annum which is 60 percent of the projected traffic of the port.

However, the company has indicated that the balance capacity is proposed to be utilised by other users. JSWIL envisages the port capacity to reach 28 million tonne in five years from the year of commissioning.

It will have 3 berths to start with and later increase it to 5 by the end of the fifth year of operation. The number of berths is proposed to be increased to 12 in the 30th year of operation, when the traffic is projected to increase to 130 million tonne per annum. The proposed deep water port will also be equipped to handle container and liquid cargo, sources added.

The Orissa government is expected to benefit to the tune of Rs 6930 crore over a period of 30 years with the per annum revenue accruing in the form of taxes and duty estimated at Rs 231 crore.