JSW to invest Rs 2,000 crore to set up captive port in Odisha
Fri, 08th Sep 2017 (Source:Business Standard)
JSW Infrastructure, part of the Sajjan Jindal controlled JSW Group, has pledged an investment of Rs 2,000 crore to set up a captive port in Odisha's coast at Jatadhari Muhan near Paradip. Initially, the port would have a capacity to handle 10 million tonnes of cargo and which could be subsequently raised to 20 million tonnes.
Initially, JSW Group in its proposal to the Odisha government had evinced interest to establish a commercial port at Jatadhari Muhan. The site selected was the one chosen by Posco India for building its captive port. But, JSW dropped its interest for the commercial port as such a port can be set up only through the competitive bidding route as per the state's port policy.
Â"JSW Group had earlier proposed a commercial port but of late, they have come up with a revised plan for a captive port. The capacity of this proposed port can go up to 20 million tonnes a year”, said a senior Odisha government official with direct knowledge of the matter.
In a previous communication with the Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol), JSW Steel said the site selected by the company is outside the port limits of Paradip, a major port and away from the proposed Astaranga port as indicated in the concession agreement, by about 32 km. The company suggested that the Jatadhari Mouth site may be given to JSW Infrastructure Ltd on long term concession.
The captive port is expected to cater to the requirement of JSW's shore based steel plant proposed near Paradip. JSW Steel has committed an investment of Rs 50,000 crore on the Odisha steel plant and associated facilities. The company has asked for 4500 acres of land for the integrated steel project to be set up close to Paradip.
Though the state government officially maintains that the site for JSW’s steel project is not zeroed in, the company has clearly asked for the land where Posco project was supposed to come up. JSW Steel has asked for 2,700 acres of land that has already been acquired for the Posco project. The company desires that this patch of land should be transferred by the state government after constructing the boundary wall. Aside from the steel plant, the company has asked for around 150 acres of land for township and 90 acres for rehabilitation & resettlement (R&R) colony. The steel company has urged the state government to transfer all the land parcels at the rate of Rs 4 lakh per acre.
To optimise raw material costs, JSW Steel has committed an investment of Rs 3,700 crore on a slurry pipeline for transporting 30 million tonnes of iron ore each year from Joda to Paradip. Both the steel project and the slurry pipeline have been approved by the High Level Clearance Authority (HLCA), the highest body to clear investments in Odisha.