Port project worth Rs.20-bn on anvil in Odisha

The Odisha government is all set to sign a concession agreement with the authorities of Gopalpur Ports Ltd (GPL) for the expansion of the facility at a whopping investment of Rs.20 billion. The pact would formally approve the change in shareholding structure of the special purpose vehicle GPL wherein the Shapoorji Pallonji (SP) Group is acquiring controlling stake in GPL while the original promoter- Orissa Stevedores Ltd (OSL) keeps the balance stake. SP Group's stake in GPL would be at least 51%, it can even go to the extent of 60%. Two shareholders who initially had stakes in GPL- Hong Kong based Noble Group and Delhi-based metals trader Sara International Ltd have walked out of the consortium formed to develop Gopalpur port into an all-weather port. The terms of the revised concession agreement would broadly remain the same as in the original agreement. The port authorities have committed to commission two new berths by June 2019, said an official source, adding that the addition of two new berths would ramp up Gopalpur port's cargo handling capacity to 20 million tons per annum (mtpa). The berths are being designed to handle bulk commodities - iron ore, coal, cement, steel and limestone and the investments to be financed through the Group's internal accruals and some project financing is also meant to put up a new breakwater facility at the port site and increase the scale of mechanization, he added.