New Delhi: The Union Cabinet On Wednesday approved a Rs 3004.63 crore project for deepening and optimisation of inner harbour facilities including development of Western Dock at Paradip Port.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved deepening and optimization of inner harbour facilities including development of western dock on Build, Operate & Transfer (BOT) basis under PPP mode to handle cape size vessels at the port, said an official statement.
The estimated cost of the project is Rs 3,004.63 Crore which 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. 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 in two phases of 12.50 MTPA each.
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.
On commissioning of the project, it shall 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 shall also facilitate (i) de-congestion of the port, (ii) reduce sea freight making coal imports cheaper, and (iii) boost the industrial economy in the hinterland of the port leading to creation of job opportunities.