NEW DELHI: Jindal Steel and Power Ltd (JSPL), one of the country’s major private sector steel manufacturers, is planning to invest up to Rs 3,000 crore in developing a port on the eastern coastal line to secure transportation of steel from its plant in Angul, Odisha plant.
The company has submitted its bid for developing the western dock at Paradip Port, and though there are 5-6 other bidders, JSPL management believes it fulfils all the criteria to be able to win the bid. “While our first choice is Paradip Port, but if that does not materialise, we would like to develop one between Paradip and Gopalpur,” managing director VR Sharma told The New Indian Express.
The Naveen Jindal-owned company has plans to expand the capacity of its Angul plant from 5.4 million tonnes (MT) at present to 25.2 MT over next 9 years. The plan to own a port is to ensure the plant does not face logistical issues.
“If we do not have logistics for such huge capacity, we would be in trouble. The existing railways and road links won’t be enough to handle 25 MT steel capacity, whether it is for exports or transportation within the country,” says the MD. He adds that it is better to transport via vessels even within the country than through roads or trains.
The company is open to either develop the berths in one of the existing ports or even develop a new dedicated port from scratch. “We are open for both a partnership with one of the existing ports or even develop a new one,” says Sharma.
In case of a partnership, the company will bring in 70-75% capital to develop and manage the port while the rest would be brought in by the port authorities. Once the company successfully bids for a port, it would seek permission from railways for a dedicated freight line to connect the plant with the port.