Tata Steel to acquire proposed Subarnarekha port in Odisha

Tata Steel today said it would acquire majority equity stake in the proposed Subarnarekha Port in Odisha.
The company in a statement said it today executed definitive agreements with Creative Port Development Private Limited (CPDPL) and their promoters for the proposed development of 'Subarnarekha Port' at Chaumukh village of Balasore district in Odisha.
As per the agreements, Tata Steel will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Private Limited (SPPL).
No further details were disclosed.
The acquisition and development is subject to certain conditions precedent, detailed technical assessments and financial closure.

CPDPL, promoted by two technoprenuers, Ramani Ramaswamy and Ramaswamy Rangarajan, had entered into a concession agreement with the Odisha government in January 2008 to develop the Subarnarekha Port as an all-weather deep-draft facility.

Detailed engineering study to arrive at the configuration and the project cost will be undertaken soon, the statement said.
Tata Steel has exited from Dhamra Port which was acquired by Adani Port.
"The investment to develop the Subarnarekha Port will address the strategic needs of Tata Steel in the future. The location of the proposed port makes it attractive to structurally enhance the competitive position of our Indian operations," Tata Steel Group Executive Director (Finance & Corporate) Koushik Chatterjee said.

"As Tata Steel grows in India in the future, securing competitive logistics solution is a key aspect in de-risking our in-bound and out-bound supply chain," Tata Steel MD India and SEA T V Narendran said.