Bhubaneswar, Jan 11 (UNI) The Orissa government today signed the Concession agreement with Chennai-based Creative Port Development Private Limited (CPDP) for construction of a port at Kirtania in Balsore district at the mouth of Subarnarekha river.
The agreement was signed after the CPDP fulfilled all the obligations, following the signing of a Memorandum of Understanding (MoU) with the Orissa government on December 18, 2006.
As per the agreement, the CPDP would construct the port on build-own-operate-share and transfer (BOOST) basis by investing Rs 2187 crore in three phases. The port would cater to the demands of West Bengal and Orissa as well as the landlocked Bihar, Jharkhand and other North Eastern regions.
The port with 10 berths would also attract a large number of port -based industries along the coast.
The first phase of the port, with four berths would be commissioned by 2010 and the projected capacity of the port would be from 14 MTPA to 50 MTPA. The port would be connected by railway from Rupsa and on road from the National Highway number 5.
The CPDP would operate the port on BOOST basis for a period of 34 years, including the four years of construction period. As per the agreement, the CPDP will share its gross revenue profit with the state government.
While during the first five years it would share five per cent of the gross revenue profit, from the sixth year to the 10th year, the profit would be increased to eight per cent and ten per cent from the 11th year to the 15th year.
From the 16th year onwards till the end of the lease period, the company would share 12 per cent of the profit.
The state government, however, agreed for a five year moratorium from the in-operation date on the share of the profit by the CPDP.
The concession agreement was signed between CPDP Joint Managing Director R Ramaswami and Commerce and Transport Secretary Priyabratta Pattnaik in the presence of State Transport Minister Jayanarayan Mishra.
Mr Mishra said with the agreement, the government had crossed another milestone in the development of ports in the state. He said there would be no displacement problem as all the land acquired for the project belonged to the government.
He hoped the survey of the port would be completed in four months time and the construction work would be started along with the acquisition of land for the project.
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