Bhubaneswar, Dec 20 (IANS): The Odisha government would soon sign a memorandum of understanding (MoU) with the Paradip Port Trust (PPT) for development of a riverine port on Mahanadi river at an estimated cost of Rs 4,062 crore in Kendrapada district, said an official on Sunday.

A high-level team of the state government led by chief secretary Asit Tripathy visited the proposed Mahanadi Riverine Port site on Sunday.

5T secretary V. K. Pandian and Commerce and Transport special secretary Manoj Mishra and PPT chairman Rinkesh Roy were part of the team.

"As per the direction of Chief Minister Naveen Patnaik, we visited and reviewed the proposed project. An MoU would be signed between Union Shipping Ministry, Odisha government and PPT for the ambitious project," said the chief secretary.

The proposed reverine port would be set up at Akhadasali village under Mahakalapada block, 13 km from the river mouth at Paradip.

This all-weather and multi-user port on river Mahanadi will be set up in PPP mode with a capacity of 54 MTPA at an estimated cost of Rs 4,062 crore, of which 22 MTPA capacity will be created in the first phase at a cost of Rs 2,562 crore.

PPT will develop supporting project infrastructure like rail and road connectivity and dredging requirements of the port.

The state government has identified 300 hectares of land for the project.

"We have the required land for the project. I hope that the port and other industrial development would materialise soon," said Tripathy.

It may be recalled that the Ministry of Port, Shipping and Waterways has agreed to the state government's proposal for the riverine port to be developed by PPT for which the formal MoU with the state government is under finalisation.

It will also provide necessary support to PPT in respect of any additional land required for the project, said an official.

Notably in 2018, the state government decided to go ahead with Mahanadi Riverine Port.

However, the project couldn't progress due to lack of interest by potential bidders. PPT then evinced interest in the project and consequently, the MoU is proposed to be signed with the state government.

On commissioning, the port will provide direct and indirect employment opportunities to more than 4,000 persons in the first phase and about another 1,700 in the 2nd phase, the official said.

The riverine port, along with the state-aided Haridaspur-Paradip Railway line, will go a long way in boosting the economy of the Kendrapara district.