Abhijit Chowdhury
Post News Network
New Delhi, Oct 8: The Cabinet Committee on Economic Affairs (CCEA) Wednesday gave its approval to the expansion of
Paradip Port.
The approval will help the project of mechanisation of east quay (EQ) berths 1, 2 and 3 at Paradip Port on build, operate and transfer (BOT) basis, under Public Private Partnership (PPP) mode for handling thermal coal exports, the Union minister for coal, power and new and renewable energy (independent charge), Piyush Goyal, said while announcing the decision after the meeting.
This will help boost the coal production from Mahanadi Coalfields and result in better realization, he said.
The estimated cost of the project is `1,437.76 crore of which `1,412.76 crore will be spent by the concessionaire, said the minister. The remaining `25 crore will be spent by the Paradip Port Trust on dredging.
The project envisages mechanisation of the EQ 1, 2 and 3 berths to increase their capacity from the existing 7.85 million tonnes to 30 million tonnes.
It is scheduled to be completed in three years from the date of award of concession.
After completion of the project, the total thermal coal export handling capacity at Paradip Port will reach 50 million tonnes, the minister for road transport, highways and shipping, Nitin Gadkari, said. This will help the port meet the growing demand of thermal coal over the next three to four years, he said. The port has handled 70 million tonnes of cargo in 2014-15 and registered a profit of `921 crore, Gadkari said.
The 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 the port. The project will also create additional employment opportunities, according to an official statement.
Paradip Port is one of the 12 major ports of India serving the eastern and central parts. The port, which mainly deals with bulk cargo apart from other clean cargoes, has got an ambitious expansion plan to enhance its capacity up to 270.50 million tonnes per annum by 2023 to meet the ever increasing demand.