Paradip Port, Odisha Maritime Board, Sagarmala Finance Corporation Ink Landmark Tripartite Agreement for New Satellite Port at Bahuda Muhana in Ganjam

Chennai:

Port Wings News Network:

Paradip Port Authority (PPA), the Odisha Maritime Board (OMB), and Sagarmala Finance Corporation Limited (SMFCL) have signed a pivotal Memorandum of Understanding (MoU) on the eve of Prime Minister Narendra Modi’s visit to Bhavnagar as various MoUs were signed under powering India’s maritime future.

Sarbananda Sonowal, Union Minister of Ports, Shipping & Waterways, graced the occasion as Chief Guest. This agreement officially launches the development of a new all-weather greenfield satellite port of PPA at Bahuda Muhana, Ganjam District, Odisha.

According to a media statement from the Paradip Port, this strategic project, identified under the Maritime India Vision 2030 and the PM Gati Shakti National Master Plan, is set to be a significant boost for India’s maritime infrastructure. The proposed Bahuda Port will be developed to handle a capacity of approximately 150 Million Tonnes Per Annum (MMTPA), with an estimated capital investment of around Rs 21,500 Crore. The collaboration will see the three organizations pool their resources and expertise.

Commenting on the MoU, P L Haranadh, Chairman, Paradip Port Authority, stated that “PPA will act as the lead member of Joint Venture, leveraging its extensive experience in port development and operations. The proposed Bahuda Port will function as a satellite port of Paradip and will be operated as a major port. We are already collaborating Government of Odisha and Sagarmala Finance Corporation. Once the land allotment from Andhra Pradesh is finalized, Visakhapatnam Port will also be brought in as a partner.”

This port is planned with a capacity of 150 million tonnes. It will have four docks, with earmarked areas for port-led industrialization, a sea gate, and other port-related industries. The project will significantly contribute to the economic development of Southern Odisha, North Coastal Andhra Pradesh, and parts of Chhattisgarh.

Paradip Port and Bahuda Port will operate in tandem to create better business opportunities for exporters and importers. Paradip Port has already completed the initial land survey, and within a week, the consultancy work for preparing the Detailed Project Report (DPR) will be awarded. Rights have also been secured for the necessary geographical surveys and for notification of Bahuda as a satellite major port.

This development will help reduce logistics costs, facilitate both EXIM and coastal shipping, and strengthen trade connectivity. Together, Paradip and Bahuda will work closely to boost regional and national economic growth.

This will serve Southern part of Orissa, North Coastal Andhra as well as Chhattisgarh, to all the exporters, importers by reducing the logistics cost in a big way for exim traffic and coastal shipping. It will work as a satellite port of the Paradip, and both the Paradip and Bahuda will work in tandem.

Odisha Maritime Board (OMB) will facilitate essential state-level support, external connectivity, and necessary approvals.

The Salt Department of Govt. of India has transferred an area measuring 5,005.195 acres of salt land to the MoPSW for the purpose of development of an All-Weather Port. The SPV may acquire additional salt land from Department for Promotion of Industry and Internal Trade, Govt. of India, on request for the project.

Sagarmala Finance Corporation Limited (SMFCL) will provide crucial financial and quasi-equity support, structuring debt instruments and managing financial closure for the project.

The parties have agreed to form a Special Purpose Vehicle (SPV) to implement the project. This SPV will be responsible for the execution, financing, construction, and operation of the new port, ensuring a streamlined and effective development process. This MoU signifies a major step toward enhancing India’s port capacity and advancing the nation’s maritime trade capabilities. The agreement establishes clear roles and responsibilities for each party, setting the stage for future definitive agreements and the successful realization of this transformative project.

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