The Orissa government yesterday accorded formal rights to Singapore-based International Seaports Ltd (ISP) for substantial expansion and development of the existing port at Dhamra in the coastal Bhadrak district.
An agreement to this effect was signed between the government and ISP here in the presence of Chief Minister J B Patnaik and the US ambassador to India Richard S Celeste, officials said.
ISP, a joint venture promoted by three other international companies with equal equity participation, would develop the port at Dhamra with world class infrastructure facilities. The port would be linked to the national network with a two-lane express highway and broad gauge railway line from Dhamra to Bhadrak, a distance of 62 km.
The total investment in the first phase would be about Rs 1,000-1,200 crore while Rs 1,500-2,000 crore would be invested in the second phase. The project would generate about 2000 direct and indirect employment opportunities, the officials said.
ISP, set up by Larsen and Toubro of India, SSA International Inc of US and Precious Shipping Public Company Ltd of Thailand, had shown keen interest in developing a port on the Orissa coast in January last year.
Subsequently, a MoU was signed between the company and the government on March 31, 1997 for substantial expansion and development of the existing port at Dhamra.
The sources said that the port at Dhamra was being planned to be made operational by 2001. It would be the first port on the east coast of the country to have a draft of 16 metres alongside berthing facility.
The facility would mainly cater to handling of bulk cargo like coking coal, thermal grade coal and iron ore.
The first phase expansion envisaged a handling capacity of 10 million tonnes of cargo per annum with an aim to expand the capacity to 25 million tonnes per annum, the officials said.
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