The Tata Steel has sought the support of the State Government to develop the Subarnarekha port as a primary port of eastern India.
Tata Steel CEO and Managing Director TV Narendran has written to the State Government in this regard as Tata Steel has increased its shareholding to 51 per cent in Creative Port Development Private Limited (CPDPL).
The Tata Steel has initiated plans to develop Subarnarakha Port as world class supporting logistics after taking majority of shares in CPDPL.
The CPDPL is the concessionaire of the Subarnarekha Port and Tata Steel has made this company its subsidiary.
With the leasing out 693 acres of land to set up the port the proposed capacity will be 25 MPTA, which will be expanded to 55 MTPA. And there will be seven berths in the first phase, which will be enhanced to 12 berths in the phase II.
After a lapse of nearly 12 long years, scope of setting up a port turns feasible as the land has been alienated in favour of the promoter of the port by the State Government and steel major has been making serious endeavour for it.
Notably, for development of port on Subarnarekha mouth (Kirtania) in Baleswar district, the State Government and the CPDPL had entered into an MoU in 2006.
The Tata Steel had signed a share purchase agreement to acquire 51 per cent equity shares of CPDPL and a shareholders’ agreement with CPDPL and its promoters for the development of Subarnarekha port through an SPV. Subarnarekha Port Private Limited.
The port location also makes it attractive for the company to structurally enhance the competitive position of its Indian operations, especially the Kalinganagar greenfield Steel Project in the State and recent acquisition of the Bhusan Steel, now the Tata Steel BSL.
