Adani, Essar, Dubai firms in race for ~2,110-crore port in Odisha

Adani Ports & Special Economic Zone (APSEZ) and Essar Ports would compete with Dubai’s DP World and Navayuga Engineering Company to get the contract for building and operating a riverine port project, planned by the Odisha government at a cost of ~2,110 crore.

“All four companies have cleared the RFQ (Request for Qualification) stage. They would now vie for the next stage of bids, to be conducted shortly,” said a state government official.

The port is planned on the Mahanadi river at Akhadasali village, Mahakalpada, in Kendrapada district. It is modelled on one built in Gujarat, on the Tapti river mouth. The cargo potential is pegged at 44 million tonnes per annum (mtpa), with the first-phase capacity at 18 mtpa. It is proposed on a BOOST (build, own, operate, share and transfer) model. The land would be provided by the state authority to the concessionaire on a lease. The lease charge would be detailed in the draft concession agreement.

The scope of work covers development and construction — including the container yard, terminal buildings, cargo handling equipment, construction of berths, facilities for cargo storage, and the operation and maintenance.

The applicant needs to have a minimum net worth of ~600 crore at the close of the preceding financial year. If a consortium, the combined technical capacity and net worth of those members which have an equity share of at least 26 per cent each in the Special Purpose Vehicle for the purpose, They are to hold this stake for at least two years from the date of commercial operation of the port.

Earlier, the Odisha government had entered into an agreement with Delhi-based WAPCOS, a consultancy company under the Union ministry of water resources, for developing this first riverine port in the state. WAPCOS had done the techno- economic feasibility study for the project.