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V.O. Chidambaranar Port Trust, TANGEDCO sign MoU to upgrade Coal Jetty-I&II
New Delhi, May 16, 2017
The V.O. Chidambaranar Port at Tuticorin in Tamil Nadu is all set for a four-fold increase in the capacity of two of its Coal Jetties -- Jetty I and II -- from 6.25 MTPA to 24 MTPA following the signing of a memorandum of understanding with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for their upgradation here yesterday.
Union Minister of Shipping and Road Transport and Highways Nitin Gadkari and Tamil Nadu Minister for Electricity, Prohibition and Excise P. Thangamani were present on the occasion.
Mr. Gadkari said the project would benefit both TANGEDCO and the VOCPT. It would make coal handling by the jetties much more voluminous and efficient, and thus bring down logistics costs. He said this would also allow for the cheaper production of electricity, which would be very beneficial for industrial growth.
With the upgradation of the coal jetties, TANGEDCO will be able to handle additional volume of coal cargo for the new power plants in Uppur and Kadaladi in Ramanathapuram district in Tamil Nadu. In addition to this, there will be a quicker turnaround of vehicles with the deployment of high-tech handling equipment like two ship unloaders, each with a minimum 2000 TPH capacity and a high capacity conveyor system of 4000 TPH, an official press release said.
This enhancement of handling capacity and upgradation of infrastructure will result in a reduction of logistics costs. TANGEDCO will, therefore, be able to utilise the services of the port in a more cost-effective way. With the power generation from TANGEDCO’s Tuticorin plants being linked to the National Grid, this would enable availability of additional power at reduced costs, which, in turn, can fuel industrial growth and employment generation.
The project is the outcome of Ministry of Shipping’s Project Unnati, under which a study, ‘Unlocking National Ports Potential’ was done to improve the handling capacity of CJ-I & II. The estimated cost for upgrading CJ-I & II is about Rs. 800 crore. As per the MoU, initially, Coal Jetty-I will be upgraded in about 24 months by constructing a new Coal Jetty-I of 300m x25m along with repair of the existing CJ-I. CJ –II will be upgraded thereafter. The upgradation will give a competitive edge to VOC Port and will help it maintain its lead position in coal handling, the release added.
The MoU was signed by Mr. S. Anantha Chandra Bose, Chairman, V.O. Chidambaranar Port Trust and Mr. M. Sai Kumar, Chairman cum Managing Director, TANGEDCO.