New Delhi (NV): The Union Cabinet today approved the project of deepening and optimisation of inner harbour facilities to handle cape size vessels at Paradip Port.
This also includes Development of Western Dock on Build, Operate and Transfer (BOT) basis under Public-Private Partnership PPP mode, the Cabinet Committee on Economic Affairs (CCEA) said in a statement.
Addressing press after the Union Cabinet meeting, Shipping Minister Mansukh Mandaviya said Cabinet Committee on Economic Affairs (CCEA) has estimated the cost of project to Rs 3,004.63 crore.
In an official release, CCEA stated, “This project 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.”
The Paradip Port’s investment will be to the tune of Rs 612.50 crore towards providing Common Supporting Project Infrastructure, it added.
Meanwhile, 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 statement said.
The concession period shall be 30 years from the date of Award of Concession. “Paradip Port Trust (Concessioning Authority) shall provide the Common Supporting Project Infrastructure works like breakwater extension and other ancillary works to facilitate handling of cape size vessels,” it added.
Furthermore, the project shall 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 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 past 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, the CCEA statement added.