BHUBANESWAR: With at least two mega steel plants coming up in Jagatsinghpur and Kendrapara districts, the State government has decided to improve logistics infrastructure in the region keeping in mind the expected load in the next 30 years.
Odisha government has given the go-ahead to JSW Utkal Steel Ltd (JUSL) to set up a 13.2 MTPA integrated steel project near Paradip in Jagatsinghpur district with an investment of Rs 65,000 crore and Arcelor Mittal Nippon Steel India to set up a 24 MTPA integrated steel plant in Mahakalapada block in Kendrapara district at an investment of Rs 1.02 lakh crore.Idco has been entrusted with the task to prepare a framework by involving private players, industries and other relevant stakeholders to take up the logistical infrastructure projects on a mission mode.
As per a recent study by the Industries department, the total freight traffic in the region has been estimated to be around 143 million tonne per annum (MTPA) of which bulk freight traffic constituted around 93 per cent (pc) during 2021-2022. Kujang and Ersama blocks generated around 96 pc of the cargo in the region.
The freight load is expected to reach in the range of 269 MTPA by 2030 pertaining to expansion plans of multiple industries. Moreover, the freight demand is projected to cross 550 MTPA by 2050.
Some of the key logistical issues the region has been facing are heavy congestion and high waiting time on NH 5A due to lack of dedicated access to industries and lack of multi-modal facilities in the area. Sources said the absence of dedicated truck parking space on NH 5A leads to roadside parking and heavy congestion affecting movement of cargo. The road transport cost is more than two times of the national average on the highway due to traffic congestion.
While Idco will take up common infrastructure such as workers hostel, warehousing complex and truck parking facility, the Commerce and Transport department has been asked to notify the Odisha Maritime Board, which has been constituted for administration, control and management of non-major ports and non-nationalised waterways in the State.