3,000 cr war chest for port built by JSPL

Major steel manufacturer Jindal Steel and Power Limited, JSPL makes an investment plan up to Rs 3,000 crore in establishing a port on the country's eastern coast to ensure steel shipment from its Angul, Odisha factory. Bid has been submitted at the Paradip Port. JSPL management believes it meets all of the conditions to be able to win the contract among the other five to six bidders. Managing director, VR Sharma stated that their initial preference will be the Paradip port, if not they are willing to build one between Paradip and Gopalpur. The company makes expansion plans for the Angul plant’s capacity to increase from 5.4 MT to 25.2 MT in the following nine years. Avoiding logistic problems at the plant is the aim of owning a port. Shortage of logistics for this capacity would be troublesome. Present rails and road networks will be unable to accommodate 25 MT of steel capacity. He furthermore says that in India, vessels are more preferable for transportation, in comparison with roads. Mr Sharma further added they are open to partnership with existing ports as well as forming a new one. If a partnership is formed, the corporation will provide 70-75% of the capital required to develop and administer the port, with the remainder coming from the port authority. After winning the port bid, the corporation would seek approval from railways to build a dedicated freight line connecting the plant to the port. Image Source Also read: JSPL will invest Rs 1 lakh crore in Odisha for next 10 years Also read: Jindal Steel expects to sell over 96% Jindal Power stake by December