Tata Steel to buy majority stake in Odisha port project
Reuters | Photo Credit: Reuters

Tata Steel Ltd on Wednesday said that it has signed a definitive agreement with Creative Port Development Pvt. Ltd (CPDPL) and their promoters for the proposed development of Subarnarekha port in Odisha.

As per terms of the agreement, Tata Steel will acquire 51% equity stake in CPDPL, for which the outlay has been kept at approximately Rs.120 crore. The port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Pvt. Ltd (SPPL).

“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,” said Koushik Chatterjee, Tata Steel’s group executive director (finance and corporate) in a statement issued to the Bombay Stock Exchange.

With eyeing growth in Kalinganagar, our offtake through Dhamra is also slated to increase, he added.

CPDPL, promoted by Chennai-based Ramani Ramaswamy and Ramaswamy Rangarajan, had entered into a concession agreement with the Odisha government in January 2008 to develop the port as an all-weather deep-draft facility.

Of the various proposals for setting up ports in Odisha, Dhamra port, a joint venture between Tata Steel and Larsen & Toubro Ltd (now owned by Adani Group), and Gopalpur port are operational.

Tata Steel’s crude steel capacity during FY16 stood at 28 million tonne per annum and the company clocked a turnover of $17.69 billion.

Like this report? Sign up for our daily newsletter to get our top reports.

Leave Your Comment(s)