Government stalls Dhamra expansion
Expansion of the Port of Dhamra has been stalled by the Odisha government which has stated: “Allotment of additional land to DPCL for second phase development at this stage does not appear tenable.”
The government has reportedly called a halt to expansion plans amid speculation that engineering company, Larsen and Turbo Ltd (L&T) is planning to sell its share in Dhamra Port Company Ltd (DPCL), a joint venture between L&T and Tata Steel Ltd.
DPCL has been entrusted, by way of concession granted by the Government of Odisha, to build and operate a deep draught, all weather, multi user port in the Bhadrak district. The 34 year long concession, which includes a four year construction period, will enable the port to become the biggest and most efficient on the East Coast of India.
After receiving a financial loan from the Industrial Development Bank of India (IDBI) in February 2007, Phase I began during which two 350m mechanised berths and a 62km rail link from Dhamra to Bhadrak were built.
To be eligible for additional land, DPCL has to achieve a capacity utilisation of 70% of Phase I, gain environmental clearance for the 800 acres needed for port operations in Phase II and obtain a no objection certificate from the National Green Tribunal before further expansion can take place.
A meeting between the state commerce and transport department will take place imminently to finalise the guidelines for the assessment of land requirement.
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