Tata Steel picks up majority stake in Subarnarekha port project in Odisha
Bhubaneswar: Tata Steel Limited (Tata Steel) has executed a definitive agreements with Creative Port Development Private Limited (CPDPL) and their promoters for the proposed development of “Subarnarekha Port” at Chaumukh village in Balasore district.
As per the agreements, TSL will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Private Limited (SPPL).
Tata Steel didn’t disclose the consideration it was paying to acquire the stake in CPDPL.
CPDPL, promoted by two technoprenuers, Mr Ramani Ramaswamy and Mr Ramaswamy Rangarajan, had entered into a Concession Agreement with the Government of Odisha in January 2008 to develop the Subarnarekha Port as an all-weather deep-draft facility. Detailed engineering study to arrive at the configuration and the project cost will be undertaken soon.
The upcoming all-weather port is expected to complement the company’s recently commissioned steel operations in Kalinganagar
Koushik Chatterjee, Group Executive Director (Finance & Corporate), Tata Steel, said, “The investment to develop the Subarnarekha Port will address the strategic needs of Tata Steel in the future. The location of the proposed port makes it attractive to structurally enhance the competitive position of our Indian operations and we look forward to working together with the current promoters to make Subarnarekha a very efficient port in the future,” Tata Steel’s group executive director (finance and corporate), Kousik Chatterjee said in the company’s statement. “With the growth envisaged in Kalinganagar (where Tata Steel has recently commissioned a greenfield steelmaking capacity) in the future, our off take through Dhamra is also slated to increase”.
The fresh investment that Tata Steel proposes to make in a port facility, to complement its steel mill operations in Odisha, comes after the company had, in 2014, divested its stake in Dhamra Port, along with Larsen and Toubro, to Adani Ports, for a total consideration of Rs 5,500 crore.