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JSW Group wants to develop commercial port in Odisha

Mon, 22nd May 2017 (Source:Business Standard)

The Sajjan Jindal-controlled JSW Group is keen to set up a commercial port at the mouth of the Jatadhari, Odisha, and 13 km south of the Paradip port. The port project is proposed to be set up through JSW Infrastructure Ltd, the infrastructure arm of JSW Steel Ltd.

Posco India, too had planned to establish a captive port at the Jatadhari river mouth for its mega steel plant. With Posco aborting its 12-million-tonne plant in Odisha, JSW Infrastructure is keen to set up a commercial port at the site. A JSW spokesperson, however, said, “As of now, we are not planning a commercial port in Odisha.”

Business Standard has reviewed the papers the company submitted to the Odisha government. "The proposed site is located outside the port limits of the Paradip port, which is a major port, and about 32 km away from the proposed Astaranga port,” JSW Steel said in its revised proposal to the Investment Promotion & Investment Corporation of Odisha Ltd (Ipicol). “It is accordingly requested that the Jatadhari mouth site may be given to JSW Infrastructure Ltd on long-term concession for establishing and operating a commercial port at the extant terms and conditions.” IPICOL is Odisha government's one-stop agency for investment promotion and facilitation.

JSW Infrastructure has proposed to build the port on build, own, operate and transfer (BOOST) basis on a long-term lease. As the port is proposed to be developed as a commercial one, no wharfage would be applicable. The government revenue accruals would be based on revenue sharing, the company said. The capacity of the proposed port and its investment size is not known. 

JSW Group has committed a combined investment of Rs 55,000 crore on its portfolio of projects in Odisha — including a 10-million tonne integrated steel plant, a port in Jagatsinghpur district and a slurry pipeline from Koira to Paradip.

JSW has earlier chosen the site originally allocated for Posco India’s plant as the location for its integrated steel plant. Accordingly, JSW Steel has sought transfer of all facilities such as land, water, power, railway and financial incentives extended to the Posco project. In the revised project plan, JSW Steel intends to build a 32-million-tonne-per-annum (mtpa) pellet plant, instead of an eight-mtpa planned earlier, for its own consumption as well as exports.

For its integrated steel mill, JSW Steel has asked for 2,700 acres already been acquired for the Posco project. The company has also asked for around 150 acres for a township and 90 acres for a rehabilitation & resettlement (R&R) colony. JSW Steel has urged the state government to transfer all the land parcels at the rate of Rs 4 lakh an acre.

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