Govt approves Rs 1,438-cr project for Paradip Port

New Delhi: The government Wednesday approved a Rs 1,439-crore project for mechanisation of three berths at Paradip port on public private partnership (PPP) basis.

"The government has approved mechanisation of three berths at Paradip Port for handling of thermal coal, at an expenditure of Rs 1,438 crore on BOT (build, operate,transfer) mode under PPP," Road Transport, Highways and Shipping Minister Nitin Gadkari told reporters.

Gadkari said after completion of the project, the port can handle export of 50 million tonnes of coal. This will help the port to meet the growing demand of thermal coal over the next three to four years. The port has handled 70 million tonnes of cargo in 2014-15 and registered a profit of Rs 921 crore, he said.

"The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its approval to the project of Mechanisation of East Quay (EQ) Berths-1, 2 and 3 at Paradip Port on BOT basis, under PPP mode' for handling thermal coal exports," an official statement said.

It said the estimated cost of the project is Rs 1437.76 crore of which Rs 1,412.76 crore will be spent by the concessionaire and the remaining Rs 25 crore will be spent by the Paradip Port Trust on dredging.

"The project envisages mechanisation of EQ 1, 2 and 3 Berths to increase their capacity from the existing 7.85 million tonnes to 30 million tonnes," the statement said.

The project is scheduled to be completed within three years from the date of award of concession.

"This mechanisation project will go a long way in improving the operational efficiency in Paradip Port and thereby reduce transaction cost for thermal power plants dependent on coal supply through Paradip Port. The project will also create additional employment opportunities," the statement said.

Paradip Port is one of the 12 major ports of India serving the eastern and central parts.

Its hinterland extends to Odisha, Jharkhand, Bihar, Chhattisgarh, West Bengal, Madhya Pradesh and other upcountry destinations.

The Port mainly deals with bulk cargo apart from other clean cargoes.

The Port has got ambitious expansion programme to enhance its capacity up to 270.50 million tonnes per annum by 2023 to meet the ever increasing demand.