Orissa government on Monday signed a concession agreement with Navayuga Engineering Company to set up a port with a capacity of 25 MTPA, at an investment of Rs 6,500 crore in Puri district.

The state government signed the concession agreement, almost two years after concluding a MoU with the Hyderabad- -based developer Navayuga on 12th December, 2008.

“The port will be developed at Astarang in Puri district. The detailed project report (DPR) will be ready within a year,” Navayuga’s managing director Chinta Sridhar said after signing the agreement.

The port would be operational within four years of land acquisition, commerce and transport department secretary G B Dhal said.

Astaranga Port would be full-fledged all weather multi-user port on BOOST (build, own, operate, share and transfer) basis, he said.

Though the initial capacity of the port will be 25 MTPA, it would reach 70 MTPA to export cargo like iron ore, thermal coal, coking coal, coke and break bulk cargo.

In the initial phase, dredging would be done up to 15.5 meters which could reach further to 20 meters, commerce and transport minister Sanjib Sahoo said.

The port would carter to ultimate vessel size of 1.75 lakh DWT (dead weight tonnage), he said.

Astaranga Port project, which would generate a large number of direct and indirect employment, would have service corridor of 90-km long rail and road.

The state government has already signed concession agreements with three other companies to develop port facilities at Gopalpur, Dhamra and Kirtania, sources said.

While Gopalpur port has already been operational, Dhamra Port would be ready in next few months.