Statesman News Service
BHUBANESWAR, Feb. 26.

The consortium of Orissa Stevedores Limited will take over Gopalpur minor and seasonal port to develop it into a major and all-weather port at an estimated cost of Rs 700 crore. A proposal to this effect was okayed by the Cabinet sub-committee, headed by chief minister Mr Naveen Patnaik, here yesterday. The sub-committee’s recommendation will be placed before the Cabinet soon for the formal approval. The consortium will develop the port at an estimated cost of Rs 700 crore in two phases on build-own-operate-share-transfer (Boost) basis. A sum of Rs 483 crore will be invested in the first phase and another Rs 217 crore in the second leg. The state government will provide 644 acres of land. Rites India, the consultant appointed by the state government for selection of a developer, had recommended negotiation with the consortium on the revenue sharing arrangement. Meanwhile, the consortium, which had earlier offered revenue sharing rate below the reserved percentage fixed by the government, has submitted a revised offer of 1.5 per cent of the gross revenue from the second year of the commissioning of the port. Official sources said the consortium had offered to pay five per cent of the gross revenue from fifth to ninth year and 7.5 per cent from the tenth year. The minor port, which was operational from 1987, has stopped its operation since 2003. The state government, which has invested Rs 123.05 crore on the project, has earned a total revenue of a meager Rs 24.3 crore over the years.