Odisha Commerce Minister Subrat Tarai has stated that the Odisha government on August 30 rejected a proposal by Jindal Steel and Power (JSPL) to acquire 49 per cent stake in Gopalpur Ports (GPL) in the state. Citing the State’s Law Department’s report, he said that the Gopalpur port could not be transferred before its operation for at least three years.
The Port has been developed jointly by Odisha Stevedores and Delhi-based Sara International, after Hong Kong-based Noble Group exited the consortium in May, 2010.
Jindal was keen on acquiring 60 per cent stake in GPL. The State government, however, had objected to the proposal as it violated the terms of the concession agreement signed with the original promoters. The agreement with the original promoters stated they have to retain at least 51 per cent stake for at least three years from the date of commencement of the port’s operations.
The Gopalpur port started commercial operations in July this year with transport of 7,500 tonne of ilmenite by a small vessel to South Korea, the sources said.
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