JSPL keen on captive port in Bahuda-Muhan in Ganjam; to have stake in Gopalpur port

Jindal Steel & Power Ltd (JSPL) has ruled out the possibility of acquiring controlling stake in Gopalpur Ports Ltd (GPL), a special purpose vehicle (SPV), developing the seasonal port at the beach town near Berhampur city in south Odisha into an all-weather port. JSPL had evinced interest in acquiring stake after the Hong-Kong based Noble Group exited the SPV. Initially, GPL was floated as a consortium of three partners with the other two companies being Odisha Stevedores Ltd (OSL) and Delhi-based Sara International Ltd (SIL). The port's total capacity was envisaged at 54 million tonne per annum (mtpa) and it was to be developed at a cost of Rs 3,500 crore. "We are not keen on a controlling stake in GPL as the majority equity will be held by the two existing partners- OSL and SIL. Also, JSPL has not decided the percentage of stake it will have in GPL”, said a top JSPL official.

GPL has already claimed to have achieved financial closure of Rs 1,400 crore for the first stage of Phase-II of the deep sea port, with the signing of loan agreement with a consortium of 11 banks. Meanwhile, JSPL said it is committed to develop its captive port proposed at Bahuda Muhan in Ganjam district, located within 50 km radius of the Gopalpur port. “We have already given a presentation to the state government regarding our plan to establish a captive port at Bahuda Muhan. After we pick up stake in GPL, we will have the first right of refusal for developing a port at Bahuda Muhan as the site is within 50 km radius of the Gopalpur port”, said the JSPL official. The port involves a capital cost of Rs 1424.4 crore while the operational cost of running the port would be to the tune of Rs 152 crore per annum.

Source: Business Standard