Tata Steel has signed a joint venture agreement with Creative Port Development to develop “Subarnarekha Port” at Chaumukh village of Balasore district in Odisha
Promoted by technoprenuers Ramani Ramaswamy and Ramaswamy Rangarajan, Creative Port entered into a Concession Agreement with the Odisha government 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, said Tata Steel in a statement on Wednesday.
Tata Steel will acquire majority equity stake in Creative Port and its wholly-owned subsidiary Subarnarekha Port Pvt Ltd will develop the port.
The acquisition and developments are subject to certain conditions precedent, detailed technical assessments and financial closure, it added.
Koushik Chatterjee, Group Executive Director, Tata Steel, said the location of the proposed port makes it attractive to structurally enhance the competitive position and the offtake through Dhamra is also slated to increase with the growth in Kalinganagar operations.
TV Narendran, Managing Director, said that securing competitive logistics solution is a key aspect in de-risking supply chain requirements and the proposed port will address the long-term strategic needs of the company.