___________

Following is an excerpt from a report in Business Standard.

The Centre would provide Rs716 crore under ‘Viability Gap Funding’ for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.

“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.

The funds to be provided by the Centre under ‘Viability Gap Funding’, will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.

The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.

Of the expected overall investment figure of Rs2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

… This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.

The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .

This is really great. Especially, the part about a greenfield coastal road.  Odisha has been demanding such a road for a long time. I think eventually it will run all the way from Dhamara-Paradeep-Astaranga-Konark-Puri-Baliharchandi-across Chilika to Gopalpur. From Dhamara to the North they can put this road together with the National Waterway.

Following is from http://pib.nic.in/release/release.asp?relid=63957.

Union Government through Inland Waterways Authority of India (IWAI) develops inland water terminals/ports only on those waterways which are declared as National Waterways (NWs). Following five waterways have so far been declared as NWs:

(i)    National Waterway-1: Allahabad-Haldia stretch of the Ganga – Bhagirathi-Hooghly river in the States of Uttar Pradesh, Bihar, Jharkhand and West Bengal.  

(ii)    National Waterway-2: Sadiya–Dhubri stretch of the Brahmaputra river in the State of Assam.  

(iii)   National Waterway-3:  Kollam-Kottapuram stretch of West Coast Canal andChampakara and Udyogmandal canals  in the State of Kerala. 

(iv)   National Waterway-4:  Kakinada-Pudducherry stretch of canals comprising ofKakinada canal, Eluru canal, Commamur canal, Buckingham canal and theKaluvelly tank, Bhadrachalam-Rajahmundry stretch of river Godavari andWazirabad-Vijaywada stretch of river Krishna in the States of Andhra Pradesh and Tamil Nadu and the Union Territory of Puducherry.  

(v)   National Waterway-5:   Talcher-Dhamra stretch of Brahmani-Kharsua-Dhamrarivers, Geonkhali-Charbatia stretch of East Coast Canal, Charbatia-Dhamra stretch of Matai river and Mahanadi delta rivers between Mangalgadi and Paradip in the States of West Bengal and Orissa.   

Out of these NWs, developmental works including development of inland water terminals/ports are being carried out by Inland Waterways Authority of India (IWAI) on NW-1, 2 and 3 only.  Developmental works on NWs 4 & 5 have not yet commenced.

Details of inland water terminals/ports developed on NW-1, 2 and 3 and the funds allocated for development/maintenance of IWT terminals/ports during 2010-11 are:

This information was given by the Minister of Shipping, Shri G.K. Vasan in Lok Sabha today.

***

MC/MK

Update: Following is excerpted from a report inTelegraph.

… Official sources said surveying the land for the project has already been completed. The legal and statutory requirements have been submitted to the appropriate authority for clearance.

… As per the proposal, the company would invest Rs 150 crore for land acquisition and connectivity, Rs 100 crore for energy academy, Rs 2,700 crore for power plant, Rs 1,000 crore for creating marine facilit. While Rs 400 crore would be invested for desalination plant and another Rs 500 crore would be towards township and office complex.

…Officials pointed out that oil and gas-based industries, which have shown interest in the hub are Alph Tech International Inc., Downstream Services, USA, Richemen Petroleum-Export Oriented Refinery, Dubai, SBM Offshore –FPSO Services, USA, ULO Systems LIC, Subsea Pipelines, Switerzerland and Dubai, Hyundai Offshore, South Korea.

The non-oil and gas-based industries which has evinced interest in the hub are Seacor Marine Inc, USA, Faros Investment Partners, UP, Wind Turbines and Blades, Aerostar, USA, Matrix Global LIC, USA and Virtue Group, USA.

Following is from an UNI report in newkerala.

The proposal was submitted to Chief Minister Naveen Patnaik by Mr S K Chalamsethy, Director Sonepur Energy and Oil City Private Limited set up by the consortium, sources said today.

The company, official sources said, had proposed to set up an Energy Academy for the development of technical knowhow in the energy and oil sectors and create necessary infrastructure for port, power, desalination plant, fabrication and township.

While the Consortium would invest Rs 5,000 crore, other industrial houses would invest nearly Rs 10,000 crore. The projects, when completed, would provide direct employment to 20,000 people and indirect employment to one lakh.

The Energy Academy would impart training to engineer, geologist, geophysicist, drilling engineer, fabricators besides other technical persons in close association with the international oil companies.

The company, sources said, would invest Rs 100 crore on the academy which would encourage small business men in the Oil sector.

In the proposed Oil city, a port, a ship manufacturing unit, 1000 MW gas based power plant and 120 MLD Desalination Plant, besides a modern city for a population of 10,000, would be established. This apart, infrastructure for setting up of Petrochemical complex and Oil storage would be created in the city.

Official sources said the Southern Orissa, being located on the Krishna-Godabari and Mahanadi basin, has the potential for investment in the oil and gas sectors and Orissa would emerge as a major Hydrocarbon Hub in the entire South East Asia.

In a report in Orissadiary, the group is named as Greenco. I could find a website for Greenko which has a director named Anil Kumar Chalamalasetty. This financial express interview is with him. Greenko stock listing info is here.

Note that Sonepur in Ganjam is next to the Bahuda Muhana. See

• Map: Orissa ports (large map)
• Map: Orissa ports (small map)

In 2008 the Odisha government had proposed Bahuda Muhana as one of the sites in response to a GOI call for a PPP based shipyard. So the above mention plan for a shipyard fits in nicely; or it may mean good homework done by the group in making the overall proposal.

However, Odisha government needs to be careful about grandiose proposals from newcomers, as it may be a land grab plan in disguise.

Following is an excerpt from a report in Financial Express.

“We have decided to go for ICB (international competitive bidding) route instead of an memorandum of understanding for the development of Barunei Port,” said the state minister for commerce and transport, Sanjib Sahoo. The minister said that the tenders would be floated soon after the Minister for environment and forest (MoEF) cleared the project.

The state governmeont has given an environment clearance proposal to the MoEF as the port site falls with the ecologically sensitive Gahirmatha wildlife sanctuary.

… Sahoo said that the government decided to go for tender route for Barunei Port as several companies were interested in the site.

The state government has received expression of interest for development of the port at Barunei from five companies.

Besides ArcelorMittal, Mundra Port and Special Economic Zone Ltd., a company of Adani Group of Gujarat, Chennai based Secal Logistics, Adhunik Metaliks of Jharkhand, and SPI Infrastructure of Chennai have applied for the port site at Barunei Muhan. The site is considered to be strategically important as it is close to Paradip Port, one of the major ports of the country.

Links for the map of current and proposed ports in Odisha.

• Map: Orissa ports (large map)
• Map: Orissa ports (small map)

Following is from a report in Business Standard.

Jindal Infrastructure Limited, a JSW Group Company, which proposed to up a Rs 2238-crore captive deep sea port at Bichitrapur in Orissa’s Balsore district, has targeted to achieve a cargo throughput of 10 million tonne per annum (mtpa) in the first phase.

The company will invest Rs 550 crore in the first phase which is scheduled for commissioning by 2013. The port’s cargo handling is projected to reach 20 mtpa in the second phase to be operational by 2013 and 45 mtpa by 2020.

JSW Infrastructure will invest Rs 750 crore and Rs 938 crore in the second phase and third phase respectively.

The port will handle cargo like coking coal, thermal coal, met coke, dolomite limestone, iron ore, finished steel products, bauxite, gypsum and clinker.

Out of the total investment of Rs 2238 crore, JSW will invest Rs 230 crore on land development, Rs 243 crore on berths, Rs 120 crore on breakwaters and embankments, Rs 900 crore on dredging and Rs 366 crore on handling equipment.

Besides, Rs 150 crore will be invested on railway and road network while Rs 69 crore is earmarked for buildings and workshops.

The port project will generate direct employment for 500 besides creating indirect employment avenues for 5000 others.

… The port will have a maximum draft of 18 metres.

As per the land use plan of the project, the port back-up area including approaches will be 3500 acres, out of which 2500 acres will be developed through reclamation using dredged material and the balance 1000 acres will be provided by the state government.

… JSW has assured to develop the port at Bichitrapur as per the amended CRZ (Coastal Regulatory Zone) norms.

The company will prepare the Environment Management Plan for the project.

The port will be located at a distance of 35 km from the rail link, 30 km from the nearest National Highway (NH-60) and seven km from the nearest state highway (SH-4).

JSW’s port will have a multiplier effect as it will encourage port-based industries like apparel parks, forging industry, leather industry as well as pharmaceuticals and biotechnology industries.

The following is from http://www.iwai.gov.in/mapnw5.htm.

Salient features of National Waterway No. 5 – Brahmani river & Mahanadi delta system along with East Coast Canal (NW-5) Declared as National Waterway 5 (NW 5) on 25.11.2008 Detailed Project Report (DPR) prepared by M/s. WAPCOS Length – 588 km. River portion (371 km) Canal portion (217 km) Estimated Cost (at 2009 prices) (i) Cost for development of River portion Rs. 2230 cr (Barrages- 1843 cr) (ii) Cost of development of canal portion Rs. 1979 cr (Dredging- 1273 cr) (iii) Total Cost Rs. 4209 crore Period of Completion – 7 years Land Acquisition: in West Bengal – 846 Ha in Orissa – 1172 Ha required Estimated cost of land acquisition – Rs. 176 Crore Details of dredging River portion – 10.07 million cum Canal portion – 44.77 million cum Barrages To maintain LAD of 2 m in the Brahmani river all through the year, 5 barrages with height equal to the highest flood level are proposed to be constructed at every 26 km between Talcher and Jokadia. Each barrage will have a navigational lock to allow passage of two 500 tonne vessels at a time. Cargo potential Coal from Talcher to Dhamra and Paradip ports is the most important potential cargo for this waterway. Immediately after the development of the waterway, it is estimated in the DPR that about 11 million tonne of cargo can be transported per year which can go up to 23 million tonne in next 15 years or so. EIRR River portion 31.77% Canal portion 12.75% Rive and canal together 23.75% For Executive Summary of DPR click here

Following is an excerpt from a report in Business Standard.

With expansion of its units in eastern India in pipelines, public sector steel major, SAIL today evinced keen interest in setting up a port in Orissa, official sources said.

A delegation of Steel Authority of India’s (SAIL) top executives today met chief secretary T K Mishra and other senior officers here to seek the state government’s assistance for the proposed port by the steel giant.

We have assured the SAIL officials of all help if they are keen for a port project," Chief Secretary T K Mishra told reporters, adding that the proposed port would help the public sector to transport coal for its requirement. The proposed port having a capacity of handling 20 million tonnes of cargo would be located anywhere in the state’s 480 KM coastline, Mishra said.
    
The state government had asked SAIL to find any of the 13 places already identified by the state’s transport and commerce department for setting up a port.

The interest in ports in Odisha is due to the mining belt and the related industrial belt in Jharkhand, Chhatisgarh, Odisha and West Bengal. These ports will help the growth of the coastal parts of Odisha. Odisha should leverage these ports to develop communication channles (especially railway lines such as Talcher-Bimlagarh, Khurda Balangir, Gopalpur-Rayagada, Chakulia-Buramara) as well as some logistics hubs in appropriate places in the western parts of Odisha such as Titlagarh and Jharsuguda.

Following is an excerpt from a report in project finance international.

Gopalpur Port project has raised Rs12.12bn loan to fund the construction of a deep sea port located in Orissa, on the east coast of the country. Sponsors are Sara International and Orissa Stevedores which hold 50% share each. Signing was held on April 28 among 11 domestic bank lenders. MLA was SBI Capital.

• See also the earlier report at http://www.orissalinks.com/orissagrowth/archives/3152.

Following is an excerpt from dnaindia.com.

… The port may be called the Adani-Kalinga Port.

The group has been nurturing a desire to have a port on the eastern coast in addition to the existing one on the western coast. It will help consolidate this group’s position in the port and shipping business in India.

Moreover, any group that owns major ports on both the western and eastern coasts of India could be expected to play a major role in coastal shipping as well, for ferrying goods from one coast to another, thus reducing costs, time and the incidence of pilferage that plagues road transportation.

… The proposed outlay is around Rs 10,000 crore. According to current plans, this port is to have 16 berths, and will have a capacity of 100 million tonnes —- almost similar to the capacity planned for Mundra.

… The interest of the Adani group has been confirmed by Satyabrat Sahu, transport and commerce secretary of Orissa, who is on record stating, “The Adani Group has given this proposal to set up a port. The state government is examining the proposal.”

… According to senior people in both the Adani group as well as the Orissa government, the process of examination is almost complete, and two of three approvals required have been obtained.

The last one should be in hand in a few days.

Adani officials said the port could be developed in two phases near Paradip in Jagatsinghpur district, barely three km from Jatadhari Muhan, where Posco India plans to set up its own captive port.

The group plans to invest Rs 5,000 crore in each of the two phases. If all goes well, 12 of the 16 berths should be up and running by 2015-16.

According to current plans, the port will handle coal, iron ore, liquid and containerised cargo. It may be mentioned that the Adani group owns several coal mines in Indonesia. Some of this coal is already being imported into India through the Mundra port.

Similarly, the Adani-Kalinga port could be the entry point for coal imports on the eastern coast as well, to feed many of the power plans that are expected to come up south of the proposed Adani-Kalinga port.

Similarly, since the Adani group has already become India’s largest player in the edible oil market through Adani-Wilmar Ltd, and owns oil plantations in Malaysia, this port could also play a significant part in edible oil imports.

The Adanis have also shown an interest in mining projects.

What is not known at this stage is the amount of land that will be available to the port, since a successful port must have good draft (depth), lots of land for storing goods meant to be shipped, and for evacuation of cargo that arrives at the port and transportation linkages to the hinterland.

… Since the Adani group has offered to the state government that it will be willing to invest in road and railways networks in and around the port, such a move could help in the overall economic growth of the state itself.

Such efforts could be further buttressed by hectic lobbying by both the Posco management and the owners of Dhamra Port (jointly owned by Larsen & Toubro and the Tata Group) for improving rail and road linkages on the eastern coast in India.

As was the case with the Mundra Port, the Adani group also plans to invest in power projects near this port as well.

The Odisha government should propose that Adani fund a new railway line along the proposed highway between Bhubaneswa/Khurda to Paradip and also part of the Khurda-Balangir line. The advantage for Adani will be:

• They will have a shorter path for their oil and other imports to be distributed in south India.
• Similarly through the Khurda-Balangir route and with another short-cut from Balangir to Nawapara Rd (need to be constructed) they will have another quick access path to western and central India. 

(The above mentioned three segments are shown in brown below.)

This will be a win-win situation in that it will allow both Adani and Odisha government to industrialize the Khurda-Balangir corridor and the interior areas such as Nayagarh, Phulbani and Bouda. Unlike the Railway line via Talcher and Angul and the one via Paradip-Haridaspur-Jakhapura-Keonjhar, the Paradip-Khurda-Balangir path will have less traffic from other entities, including very little passenger traffic, making it faster for Adani to send goods that way. Since the Khurda-Balangir corridor lacks industries the government may find it easier to find land and local support for industries in that corridor. In that case, it can encourage Adani and others to set up some of their planned industries in that corridor.

All of the above assume that the above dnaindia.com report is correct in that Adani aims to import coal and oil through this port and not focus on exporting minerals from Odisha.

Update: Following are excerpts from another report in Business Standard which has some extra information.

The port project called Adani Kalinga Port is to be developed in two phases at a distance of three km from Jatadhari Muhan, the proposed site of Posco India’s captive port in the state’s Jagatsinghpur district.

… The proposed port which would have 12 berths in all will handle coal, iron ore, liquid and containerized cargo.

… Besides the port, the Group plans to invest in other sectors in the state like power plant, edible oils and mining.

 

Following is an excerpt from a PTI report in Business Standard.

Ahmadabad-based Adani Group is keen on setting up a large port in Orissa coast and developing an industrial zone, including a power plant, at mammoth investment of Rs 98,000 crore.

A company delegation led by its Managing Director Rajesh S Adani met Chief Minister Naveen Patnaik here and made a presentation in this regard.

The company informed the state that it was interested in setting up a 100 million tonne capacity port in Jagatsinghpur district, near Paradip Port and a proposed captive port by Posco.

With an initial investment of Rs 5,000 crore, the company has proposed to start the first phase of the Rs 10,000-crore port project in 2013-14 and complete it by 2015-16.

It also has plans to set up an industrial zone close to its proposed port in Jagatsinghpur an investment of Rs 88,000.

…The company plans to send coal after mining at Talcher area, to Gujarat and Maharashtra from the proposed port.

"The coal will be sent after washing. The washery reject coal will be utilised for the proposed power plant," a company official said. The proposed power plant would be a part of the industrial zone.

The link http://www.rvnl.org/project/project_desc.php?id=74 has the following.

This is the latest addition to the list of RVNL projects. (15 of 60 projects in that list involve Orissa.)  It is listed as a port connectivity (PC) project. Among the various proposed ports in that area, Dhamra port is closest to be operational. This link will shorten Rupsa-Chakulia distance from 167 kms to 125 kms. More importantly it will bypass the busy Kharagpur junction and provide an alternative path to Tatanagar. It will also provide a bypass of the area that sometimes gets flooded by the Subarnarekha river.

The following map illustrates the area. (Thanks to Samit for permitting to use this map fragment from his book.)

The following is from SER’s Kharagpur division map.

The complete list of 15 Orissa related projects listed at http://www.rvnl.org/project/project.php are: 

1. (11) KHARAGPUR (NIMPURA) – BHUBANESWAR (GQ electrification – completed)
2. (12) BHUBANESWAR – KOTTAVALASA ELECT (GQ electrification – completed)
3. (14) TALCHAR-CUTTACK-PARADEEP DOUBLING WITH 2ND BRIDGE ON RIVERS BIRUPA AND MAHANADI (GQ doubling completed)
4. (15) DAITARI – BANSPANI NEW LINE (Port connectivity completed)
5. (19) ANGUL – SUKINDA NEW LINE (Post connectivity – under development)
6. (20) JAKHPURA- HARIDASPUR 3RD LINE DOUBLING (Port connectivity – recently sanctioned)
7. (26) RAJATGARH – BARANG DOUBLING (GQ – work in progress)
8. (27) CUTTACK – BARANG DOUBLING (GQ – work in progress)
9. (28) KHURDA ROAD – BARANG 3RD LINE DOUBLING (GQ – work in progress)
10. (44) HARIDASPUR – PARADEEP NEW LINE (Port connectivity – work in progress)
11. (53) TOMKA -BANASPANI – RE (Port connectivity, electrification, recently sanctioned)
12. (54) SAMBALPUR – TITLAGARH – DOUBLING (Port connectivity, recently sanctioned)
13. (55) RAIPUR – TITLAGARH – DOUBLING (Port connectivity, recently sanctioned)
14. (60) BANASPANI – JAKHPURA – DOUBLING (Port connectivity, electrification, unsanctioned)
15. (63) BURAMARA – CHAKULIA – NEW LINE WITH UPGRADING OF RUPSA – BURAMARA (port connectivity, new line, under development)

 With the Gopalpur port getting ready, RVNL should be soon taking up the Gunupur-Theruvali line. 

Following is an excerpt from a report in Financial Express.

Besides ArcelorMittal, there are four others, Jamshedpur -based Adhunik Metaliks, Chennai-based SPI Ports Pvt Ltd and Sical Logistic Ltd besides Mundra Port and SEZ Limited, Mumbai has given proposals.

While Adhunik Metaliks proposed to set up a 10-30 million tonne (MT) capacity port at Barunai at an investment of Rs 1683.62 crore, SPI Ports expressed interest to build a 19.76- 41.79MT capacity port at an investment of Rs 1,550 crore.

Sical Logistic wanted to set up a 18-46MT capacity port at an estimated cost of Rs 2,500-3,600 crore and Mundra company proposed to invest Rs 5,000 crore, the minister said.

Update:Tathya has a recent report on who is pursuing which port. Following is a table based on that info.

Following is an excerpt from a report in Economic Times by Nageshwar Patnaik.

The Aditya Birla group on Thursday signed a MoU with Orissa government to develop a sea port on Build Own Operate [BOO] basis at Chudamani in Bhadrak district on an investment of Rs.1,500 crore.

The projected capacity of the port to be developed over four years will be three million tons per annum [MTPA] in the first phase. This will be expanded subsequently to 10 mtpa.

The port will have two berths, and will handle bulk cargo such as cement, aluminium, iron ore, thermal coal, limestone, gypsum, clinker and copper. The port will be connected by a rail corridor from Markona Station to port site.

  … "In this port, directly or indirectly, about 5,000 people will be employed. By operation of the port, the state government will get revenue about Rs.20 crore per annum."

Mr Patanik hoped that the port promoter would work with the district administration and other agencies to plan and develop a port-based industrial township. …

Speaking on the occasion, Aditya Birla group executive president, Ravi Kastia said, "… We are confident that the Aditya Birla Group’s experience in putting up as many as six port facilities in the Western Coast, backed by the unstinting support of the Government of Orissa, will help us create a much required port in the state."

Following is an excerpt from a report in Business Standard.

… the race for setting up of a port at Barunei Muhan has hotted up with four developers evincing interest. They are ArcelorMittal, Adhunik Metaliks, SPI Ports Ltd and the Chennai based Sical Logistics Ltd..

Arcelor-Mittal, the largest steel maker of the world, has proposed to set up a captive port at Barunei Muhan to the north of Mahanadi river near Paradip. It will have a cargo handling capacity of 35 million tonne per annum (MTPA) to be attained in two phases. However, the company has not indicated the quantum of investment for the port.

Similarly, Adhunik Metaliks, part of Adhunik group, plans to set up an all weather commercial port at Barunei Muhan. The project will come up in phases and the total investment in the first phase is pegged at Rs 1684 crore. It will have a cargo handling capacity of 30 million tonne when fully commissioned.

SPI Ports, a division of Rs 1316 crore SPI group, proposed to develop a minor port in the same location with an investment of Rs 1550 crore. It will have 3 berths and container traffic facility in the first phase and the number of berths will go up to 12 in later phase. The company has assured to take the traffic handling capacity 41.79 million tonne per annum by 2021.

Besides, the Chennai based Sical Logistics Ltd. proposed to set up a deep water all weather commercial port at Barunei Muhan..The project envisages an investment of Rs 3600 crore in phases and will have a cargo handling capacity of 46 million tonne per annum (mtpa) when fully commissioned.

Maps of National Waterway 1 and 5 are given below.

There is a definite action plan for the construction of National Waterway 1. See details at http://iwai.gov.in/misc/nw1.pdf.  It seems a major part of National Waterway 1 is scheduled to finish by 2010. National waterway 5 is a longer project and once it starts it is scheduled to take 8 years. Following is information on the current plans regarding National Waterway 5.

NATIONAL WATERWAYY -5 [EAST COAST CANAL ALONG WITH BRAHMANI RIVER AND MAHANADI DELTA]

The stretches of the waterway (1095 kms) which has been declared as National Waterway (NW) are as follows

• East Coast Canal ( Geonkhali- Charbatia) – 217 km
• Matai river (Charbatia- Dhamra) – 40 km
• River Brahmani (Talcher- Dhamra) – 265 km
• Mahanadi delta rivers (Mangalgadi- Paradip) – 101 km Total 623 km

* The waterway is located in the States of West Bengal (91 km) and Orrissa (532 km)
* For Brahmani- Kharsua-Dhamra River, Matai river and Mahanadi delta portion(406 km), the waterway is proposed to be developed with 45 m wide and 2 m deep navigational channel while for East Coast Canal portion (217 km), with 32 m wide and 1.5 m deep navigational channel.
* Developmental works envisaged are as follows:

• Widening of narrow canal
•  Dredging, Excavation
•  Bank protection
• Construction of barrages in Brahmani river at 5 places
• Repair of locks
• Modification of bridges & roads
• Navigational aids
• Setting up of IWT terminals (all terminals are in Orissa)

* Estimated Cost of development works (Rs 1526 crore- At 2002 prices)

• Fairway development – 1271(Cost of barrages Rs 900 cr)
• Navigational Aids – 11
• Terminals – 242
• Setting up of office – 2

              Total 1526

*The cost given above is at 2002 rates as indicated by the Consultant earlier. They are revising the cost and the current cost is likely to be of the order of Rs 2950-3000 cr as tentatively informed by them
* Period of implementation- 8 years
* Identified cargo- Coal, fertilizer, cement, iron ore, paddy, rice, seeds, coconut, wheat, sugar, edible oils, bamboo, straw, jute, industrial products etc.

Following is from http://pib.nic.in/release/release.asp?relid=46317.

The Cabinet Committee on Economic Affairs today approved the project of Construction of Deep Draught Coal Berth at Paradip Port on Build, Operate and Transfer (BOT) basis at an estimated cost of Rs.479.01 crore, out of which Rs.408.90 crore will be borne by the BOT operator while Rs.70.20 crore will be borne by the Paradip Port Trust. The length of the approved BOT Coal Berth would be 370 meter, alongside depth of (-)17.1 meter which will be capable of handling vessels of 1,25,000 Dead Weight Tonnage (DWT) and will have developed stacking area of about 1,47,000 sqm. The project is to be implemented within a period of 36 months from the date of award of the concession.

The following are the benefits/results of the project:

(i) The project will help in de-congestion of Port due to handling of coal in higher capacity vessels upto 1,25,000 DWT.

(ii) Reduce Sea freight which will make imports cheaper.

(iii) Boost the industrial economy in the hinterland of Port leading to creation of job opportunities.

*****

AD/SH/LV

Update: Following is an excerpt from a report in Hindu.

…“The Defence Research Development Organisation (DRDO) had objected to construction of a port at Inchudi which was close to test range at Chandipur”, Chief Secretary Ajit Kumar Tripathy said after holding a discussion with the DRDO personnel here on Frida y.

The state government, which was planning at least five ports in Balasore coast, had received green signal from DRDO for four other ports at Bahalpur, Chudamani, Chandipur and Kirtania. Only one port at Inchudi was objected to, he said.

Meanwhile, the state government had already signed MoU with a private firm for setting up a port at Kirtania. The DRDO objected to the port at Inchudi because it fell within the 50 km range of the test range at Chandipur. The state government, however, claimed that though the Revenue village at Inchudi came under the 50 km radius of the test range, the proposed port is located at its border and well outside the specified distance.

The state government’s argument was not accepted by the DRDO officials who attended the meeting and asked the administration to submit a detailed project report with the Defence ministry again before going ahead with the port proposal at Inchudi.

Following is an excerpt from a report in Pioneer.

The Ministry of Defence has raised objections to the ports like Enchudi, Chandbali, Kirtania, Bahabalpur and Chudamani. However, the State Government has raised objections to it. It has pointed the DRDO had passed the proposals in way back in 1996. The Government officials pointed out that it should have raised the objections at that time when the State submitted proposals for their clearance.

Meanwhile, a high-level team of Defence officials called on the Chief Secretary and discussed these issues. “We will soon sort out the problem. Efforts would me be made to keep the interest of the State,” said the team leader of the Defence officials. The State Government has already singed MoU for the Kirtania port.