You are here: Home » Companies » News
Business Standard

PPT proposes second port at Bahuda Muhan

Sadananda Mohapatra  |  Kolkata/ Bhubaneswar 

Paradip Port Trust, the first and only major port operating in Orissa on the east coast since last five decades, has proposed to set up a second port in the state.

It has zeroed in on Bahuda Muhan in Ganjam district for the project. Interestingly, the proposed site, one of the 14 locations identified by the state government for establishment of non-major ports, had earlier attracted the notice of Jindal Steel and Power Ltd (JSPL) for a similar venture.

“We have sent the proposal to the state government and are waiting for the approval,” said A C Bose, deputy chairman of PPT.

However, he refused to disclose the details of the project.

On the other hand, JSPL, which had evinced interest to set up a port at the same location, had proposed to construct it with a capital investment of Rs 1,424.4 crore. The operational cost of running the port was pegged at Rs 152 crore per annum.

The port site is located at a distance of 30 km south of the existing Gopalpur port and 18 km from Berhampur, the commercial hub of south Orissa.

JSPL wanted to develop the port as a captive project to meet the internal cargo movement requirement for the company’s steel and power plant coming up at Angul.

PPT is interested to construct the port as a sister venture.

Besides JSPL and PPT, several other investors, including couple of steel whose projects are in the pipeline in the state, have shown interest to develop a port at the same area, sources in government said.

Anticipating fierce competition from about seven other non-major ports that will come into existence in the state by next five years, PPT has already announced to expand its current capacity.

The expansion plan included to increase traffic capacity to 237 million tonne by 2020, from 76 million tonne at present. The main addition in the capacity includes 22 million tonne for crude oil to support the cargo traffic of refinery project of Indian Oil Corporation Lt (IOCL), 95 million tonne for iron ore and coal, 20 million tonne for liquefied natural gas and a multipurpose berth which will have a capacity of 15 million tonne.

Currently Paradip port is mainly used for handling iron ore, coal, fertiliser raw material and other bulk cargo.

The proposed non-major port at Bahuda Muhan is expected to handle cargo like graphite, corn, cotton and cashew, major products of south Orissa.

Along with steel and power, the state has been able to attract investments to develop ports as the government took steps to tap its unutilised coastline that stretches for 480 km and faces Southeast Asia.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 12 2012. 00:53 IST
RECOMMENDED FOR YOU
.