CCEA nod for deepening of inner harbour facilities at Paradip Port
New Delhi, December 31, 2020
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a project on deepening and optimization of the 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 in Odisha.
The estimated cost of the project is Rs 3,004.63 crore an official press release said.
This includes the 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.
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 the breakwater extension and other ancillary works to facilitate handling of cape size vessels, the release said.
According to it, on commissioning, the project 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 the decongestion 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 the Union Government and administered under the Major Port Trusts Act, 1963, was commissioned in 1966 as a mono commodity port for the export of iron ore. In the last 54 years, the port has transformed itself to handle a variety of cargoes which include iron ore, chrome ore, aluminium ingots, coal, POL, fertilizer raw materials, limestone, clinker, finished steel products, containers, and so on.
In particular, the demand for import of coking coal and fluxes and export of finished steel products have been increasing in view of a number of steel plants established in the hinterland of the ort necessitating capacity creation to handle the requirements, the release added.