Bhubaneswar: A deep-sea port will be set up at Bahuda, in Odisha’s Ganjam district.

The Odisha Maritime Board (OMB), Paradip Port Authority (PPA) and Sagarmala Finance Corporation Limited (SFCL) signed a Memorandum of Understanding (MoU) at an event in Gujarat’s Bhavnagar for the establishment of the all-weather port at an investment of Rs 21,500 crore.

The MoU was exchanged between PPA chairman P L Haranadh, PMB chairperson Usha Padhee and SFCL MD Vikas Narwal.

As per the agreement, the port will come up on 5,000 acres of land at Bahuda and will function as a satellite port of Paradip deep-sea port, Odisha’s Industries minister Sampad Chandra Swain posted on X on Saturday.

The new port will have the capacity to handle 150 million tonnes of cargo in a year, the minister added.

Besides the major port at Paradip in Jagatsinghpur district, Odisha has two non-major ports, at Dhamra in Bhadrak and Gopalpur in Ganjam.

After Gopalpur, the new deep-sea port at Bahuda will be the second port in Ganjam district.

In another development, OMB and PPA joined hands to develop a large-scale shipbuilding cluster on the Mahanadi riverbank, in Kendrapara, at an investment of Rs 24,700 crore.

One or more large shipyard, with a combined capacity of 1 to 1.2 million gross tonnage (GT) per year, will be built. A dedicated waterfront of 2-2.5 km and a land area of 2,000-2,500 acres will be key components of the shipbuilding cluster.