Govt inks pact with Chennai companySaturday January 12 2008 12:35 IST
The State Government on Friday signed concession agreement with Madras-based Creative Port Development private limited for construction and development of the Kirtania port at Subarnarekha mouth in Balasore district on BOOST (build, own, operate, own, share and transfer) basis.The State Government had signed a memorandum of understanding (MoU) with the company for construction of the port in December 2006. This port will cater to the needs of Orissa, West Bengal, Bihar, Jharkhand and other north eastern states.Besides, it is expected that the port will attract a large number of industries.The developer will construct the port in three phases with ten berths. The detailed project report (DPR) will be prepared by joint venture L&T and Danish company Ramboll.The port will be connected by rail line from Rupsa and road from the national highway.The first phase port will be commissioned in 2010 with four berths. The projected capacity of the port will be from 14 million tonne per annum to 50 million tonne per annum.It will handle cargo like coal, iron ore, agricultural products and machineries.There will be no displacement for construction of the port on 1,018 acres.
The State Government on Friday signed concession agreement with Madras-based Creative Port Development private limited for construction and development of the Kirtania port at Subarnarekha mouth in Balasore district on BOOST (build, own, operate, own, share and transfer) basis.The State Government had signed a memorandum of understanding (MoU) with the company for construction of the port in December 2006. This port will cater to the needs of Orissa, West Bengal, Bihar, Jharkhand and other north eastern states.Besides, it is expected that the port will attract a large number of industries.The developer will construct the port in three phases with ten berths. The detailed project report (DPR) will be prepared by joint venture L&T and Danish company Ramboll.The port will be connected by rail line from Rupsa and road from the national highway.The first phase port will be commissioned in 2010 with four berths. The projected capacity of the port will be from 14 million tonne per annum to 50 million tonne per annum.It will handle cargo like coal, iron ore, agricultural products and machineries.There will be no displacement for construction of the port on 1,018 acres.
The concession agreement was signed by Principal Secretary in the Commerce and Transport Department Priyabrata Patnaik and Ramani Ramaswami, joint Managing Director of the company.The cost of the project has been estimated at Rs 2,187 crore and the company will operate the port for a period of 34 years including four years of construction.The company will give a share to the Government out of the gross revenue earned from the port. In first five years, the company will pay five percent of the gross revenue to the Government while from the sixth to the tenth year it will have to pay eight percent.Ten percent of the revenue will be paid by the company from the 11th to 15th year while from the 16th year to the end of lease period it will pay 12 percent.The Government has, however, agreed for a five year moratorium from the in-operation date on the shares payable by the company.The accrued amount will be paid during the subsequent five years in equal quarterly installments with simple bank interest.
Source: Newindpress.com
14th January, 2008