Current AffairsIndia

Cabinet approves project worth Rs 3,004.63 crore for Paradip Port

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved the project ‘Deepening and Optimization of Inner Harbour Facilities including Development of Western Dock on Build, Operate and Transfer (BOT) basis under Public-Private Partnership (PPP) mode to handle cape size vessels at Paradip Port’.

Addressing mediapersons here, Ports, Shipping and Waterways Minister Mansukh Mandaviya said the estimated cost of the project is Rs 3,004.63 crore. This includes development of the new Western Dock on BOT basis and capital dredging by the selected Concessionaire at a cost of Rs 2,040 crore and Rs 352.13 crore respectively; and Paradip Port’s investment will be to the tune of Rs 612.50 crore towards providing Common Supporting Project Infrastructure.

The proposed project envisages Construction of Western Dock Basin with facilities to handle cape size vessels by the selected BOT Concessionaire with an ultimate capacity of 25 MTPA (Million tonnes per annum) in two phases of 12.50 MTPA each.

The Concession period will be 30 years from the date of Award of Concession. Paradip Port Trust (Concessioning Authority) will provide the Common Supporting Project Infrastructure works like breakwater extension and other ancillary works to facilitate handling of cape size vessels.

The project would be developed by the selected Concessionaire on BOT basis. However, the Port will provide the Common Supporting Project Infrastructure.

On commissioning of the project, it will cater to the requirement of coal and limestone imports besides export of granulated slag and finished steel products considering the large number of steel plants established in the hinterland of Paradip Port.

The project will also facilitate de-congestion of the Port, reduce Sea freight making coal imports cheaper, and boost the industrial economy in the hinterland of the port leading to creation of job opportunities.

Paradip Port Trust (PPT), a Major Port under Government of India and administered under the Major Port Trusts Act, 1963, was commissioned in 1966 as a mono commodity port for export of iron ore.

In the last 54 years, the Port has transformed itself to handle a variety of Exim cargoes which include iron ore, chrome ore, aluminium ingots, coal, POL, fertilizer raw materials, lime stone, clinker, finished steel products, containers, etc.

In particular, the demand for import of coking coal and fluxes and export of finished steel products has been increasing in view of number of Steel Plants established in the hinterland of the Port necessitating capacity creation to cater to the Port hinterland requirements.

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