Date:23/12/2008 URL: http://www.thehindu.com/2008/12/23/stories/2008122356381500.htm

Business

Navayuga to develop port in Orissa

Special Correspondent

HYDERABAD: The Hyderabad-based Navayuga Engineering Company has entered into a memorandum of understanding (MoU) with the Government of Orissa for the development of a modern deep water, all-weather, alongside-berthing, mechanised port at the Astaranga area located in Puri district, according to a company release.

Rs. 6,000 crore port

The MoU was entered on a build, own, operate, share and transfer (BOOST) basis. The development would also include dedicated rail connectivity up to the port complex. The port was proposed to be developed in phases at an estimated cost of Rs. 6,000 crore, the release said.

The first phase was planned to be made operational in four years. As per the concession agreement, all investment for the project should be arranged by the developer; the revenue share to the Government was fixed at five per cent for the first five years, eight per cent for sixth to 10th year, 10 per cent for 11th to 15th year and 12 per cent for the remaining period of 15 years.

The MoU had a provision of 30 years concession period and could be extended by an additional 20 years. The detailed concession agreement is to be signed within six months.