CVR group to invest Rs 6k cr to set up a port near Puri

Hyderabad-based CVR Navayuga group on Monday signed a memorandum of understanding (MoU) with the Orissa government to set up a port at Astarang in Puri district with an investment of Rs 6000 crore. The port will be developed on the BOOST (build, own, operate, share and transfer) basis over a concessional period of 30 years.

This will be the fourth port to be developed under the BOOST basis in Orissa after Dhamra, Gopalpur, and Kirtania.

The Rs 20-billion engineering and infrastructure conglomerate will invest Rs 1500 crore in the first phase to enable the port handle 25 million tonne cargo per annum. In phase I, which will be completed in 48 months, the port will have two coal berths, one iron and steel berth, and one multi-purpose berth. The port’s capacity would be increased to 60m tonne following completion of the second and third phases. The phases II and III will be completed in eight years.

CVR Navayuga will lay a dedicated rail connectivity between the port and the Howrah-Chennai main line at an investment of Rs 600 crore. The project will require around 3000 to 4000 acres for the port and other related infrastructure.

The port is expected to generate revenues of Rs 20 crore per annum after the first phase and Rs 100 crore after completion of the third phase. The revenue share to the state government has been fixed at 5% for the first five years, 8% from the sixth to the 10 th year, 10% from 11 th to 15 th year and 12% for the remaining 15 years. The MoU has a provision of a concession period of 30 years which can be extended by another 20 years. The concession agreement (CA) is to be signed within six months of the signing of the MoU.

Navayuga group chairman CV Rao and Orissa commerce & transport secretary Pradeep Kumar Jena signed the MoU documents in the presence of chief minister Naveen Patnaik, commerce & transport minister Jayanarayan Mishra, finance minister Prafulla Chandra Ghadei and chief secretary Ajit Kumar Tripathy.

“Astarang port will be one of the best ports in the country. With the completion of it, Astarang will be a hub of industrial and economic activities with meaningful employments to many”, said Rao. Patnaik said the Navayuga group would develop a port-based industrial township along with an industrial port.