Tata Steel has today executed definitive agreements with Creative Port Development Private (CPDPL) and their promoters for the proposed development of ''Subarnarekha Port'' at Chaumukh village of Balasore district in Odisha.

As per the agreements, TSL will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, Subarnarekha Port Private (SPPL). The acquisition and development is subject to certain conditions precedent, detailed technical assessments and financial closure.

CPDPL, promoted by two technoprenuers, Ramani Ramaswamy and Ramaswamy Rangarajan, had entered into a Concession Agreement with the Government of Odisha in January 2008 to develop the Subarnarekha Port as an allweather deep-draft facility. Detailed engineering study to arrive at the configuration and the project cost will be undertaken soon.

Koushik Chatterjee, Group Executive Director (Finance & Corporate), Tata Steel, said, ''The investment to develop the Subarnarekha Port will address the strategic needs of Tata Steel in the future. The location of the proposed port makes it attractive to structurally enhance the competitive position of our Indian operations and we look forward to working together with the current promoters to make Subarnarekha a very efficient port in the future. With the growth envisaged in Kalinganagar in the future, our offtake through Dhamra is also slated to increase.''

Shares of the company gained Rs 5.75, or 1.24%, to trade at Rs 470.00. The total volume of shares traded was 640,010 at the BSE (2.54 p.m., Wednesday).