Friday, April 10, 2009

Tuticorin port gets EoIs for Rs 1,200cr power plant

TE Narasimhan / Business Standard / Chennai April 6, 2009

Tuticorin port, one of the major ports in the country, has received expressions of interest (EOIs) from two companies to set up a Rs 1200-crore power plant at Hare Island located within the port.

The Tuticorin Port Trust has floated tenders for the development of Hare Island in its vicinity in November 2008 for which it has received EoIs from two companies including Madras Cements and Dubai-based Coal and Oil Company to set up a power plant, said G J Rao, chairman of Tuticorin Port Trust.

Speaking to Business Standard, Rao said the port trust had allocated 80 acre of land for the project initially. The companies have shown interest to set up a 250-Mw coal-based power plant, which would require an investment of around Rs 1,200 crore.

In the next stage, the port will be preparing a detailed project report (DPR) and then approach the ministry for in-principle approval followed by calling for a request for qualification (RoQ) and request for proposal (RFP).

“The port trust is planning to create additional infrastructural facilities for port-based industries and services such as thermal power station, oil refinery, container terminal and cold storage plant,” he added.

Depending on the project, investments in the new facilities could range between Rs 500 crore (for a container terminal) and Rs 2,500 crore (for an oil refinery). The port trust will allot around 130 acre (excluding 8.9 acre already allotted to IMC Limited for tank farms) to companies at Hare Island on a long-term lease basis.

Meanwhile, cargo traffic at Tuticorin port increased to over 22 million tonne in 2008-09, an increase of 2.47 per cent. The Port handled 4,38,548 twenty-foot equivalent units (TEUs) for the financial year. Rao said net profit increased to Rs 81.5 crore from Rs 79 crore a year ago. While operating Income stood at Rs 220.65 crore, operating expenditure was at Rs 99.47 crore.