Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest private port operator, will sign a concession agreement with the Odisha government on Thursday to expand Gopalpur Port with an investment of about ₹15,000 crore after it acquired a majority stake in Gopalpur Ports Ltd from Shapoorji Pallonji Group.
APSEZ will submit a master plan to the Odisha government to develop Gopalpur as a mega port on the eastern coast by boosting its capacity.
Gopalpur is located between two major ports — Paradip and Visakhapatnam — and is expected to create synergies with APSEZ’s existing ports at Dhamra and Gangavaram and help APSEZ strengthen its east coast presence.
Gopalpur Ports Ltd runs a 20 million tonnes (mt) capacity deep-water, multi cargo port at Gopalpur in Odisha’s Ganjam district. The Odisha government awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each on mutual terms.
Gopalpur Port handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite sand, and alumina.
The port operator is contractually mandated to pay a revenue share of 7.5 per cent to the Odisha government.
The port plays a key role in supporting the growth of mineral-based industries in its hinterland, like iron and steel, alumina and others. The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.
The port is connected to its hinterland through the National Highway NH16, and a dedicated railway line connects the port with the Chennai-Howrah main line.
Separately, JSW Utkal Steel Ltd, a unit of Sajjan Jindal-led JSW Group, will sign a concession agreement with Odisha government’s Commerce and Transport Department, on Thursday to construct a captive jetty with an investment of about ₹3,000 crore at Jatadhar Muhan in Erasama Tehsil, Jagatsinghpur district to support its integrated steel plant.
The captive jetty at Jatadhar Muhan will support the integrated steel plant of JSW and bolster their logistics capabilities by ensuring seamless maritime access for raw materials and finished goods, thereby enhancing operational efficiency and reducing dependency on external ports. At its peak capacity, the captive jetty is expected to handle 55 mt of cargo a year.
JSW Utkal Steel has agreed to pay royalty to the Odisha government in the range of ₹25-35 per tonne, government sources said.
The concession period for the captive port will be co-terminus with the port dependent industry.
The two agreements will provide a fillip to Odisha’s industrial landscape, drive regional growth, create employment opportunities for some 8,500 persons and support Odisha’s vision of becoming a logistics and industrial hub on the eastern coast.
The port projects are poised to unlock new avenues of port-led industrial development and strengthen India’s maritime economy aligning with the Blue Economy and Sagarmala vision.
Black Brix (Kalinth Advisors Pvt Ltd) acted as the transaction advisor for both the projects for the Odisha government.
(source: ET Infra)
