New Delhi: The Paradip Port is in line with Prime Minister Narendra Modi’s vision of development of the eastern states, Union Ports, Shipping and Waterways Minister Sarbananda Sonowal on Sunday said, adding the success of the project is a milestone towards the port becoming a mega port. The Union Minister said the project will enhance the port’s ability to handle cape size vessels and will contribute to the port’s capacity addition of 25 Million Metric Tonnes Per Annum (MMTPA).
He added this will result in improvement in the port efficiency, better cargo handling, increased trade and also lead to socio-economic growth, including employment generation.
The Ministry of Ports, Shipping and Waterways in a release said it aims for robust investor confidence by underpinning strong vision and leadership from long term strategic infrastructure plan including a pipeline of investable projects that are economically, socially and environmentally sustainable and practically deliverable.
“One of those visionary initiatives is capital intensive project at Paradip Port which will transform the port into a world-class modern port which will have capability to handle capsize vessel,” the ministry added.
The Ministry of Ports, Shipping and Waterways said the decision has been taken with a futuristic approach as Prime Minister Modi has been laying emphasis on development of the eastern states.
“The project involves deepening and optimization of inner harbour facilities including development of western dock on build, operate and transfer (BOT) basis under Public-Private Partnership (PPP) mode at Paradip Port,” the ministry added.
The Ministry of Ports, Shipping and Waterways said the estimated cost of the project is Rs 3,004.63 crore.
“This 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; and Paradip Port’s investment will be to the tune of Rs 612.50 crore towards providing Common Supporting Project Infrastructure,” the ministry added.
The Ministry of Ports, Shipping and Waterways said the project will facilitate de-congestion 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.
“The port, after the project, can easily handle very large ships for which 18 metre draft is required resulting in reduction in logistics cost and will boost EXIM trade in the current global competitive environment,” the ministry added.
Paradip Port Authority was commissioned in 1966 as a mono commodity port for export of iron ore.
In the last 54 years, the port has transformed itself to handle a variety of EXIM cargo, which include iron ore, chrome ore, aluminium ingots, coal, POL, fertilizer raw materials, lime stone, clinker, finished steel products, containers, etc.
The Ministry of Ports, Shipping and Waterways said the Paradip Port Authority (Concessioning Authority) shall provide the common supporting project infrastructure works like breakwater extension and other ancillary works to facilitate handling cape size vessels by the selected BOT concessionaire with an ultimate capacity of 25 Million Tonnes Per Annum (MTPA) in two phases of 12.50 MTPA each, adding the concession period shall be 30 years from the date of award of concession.
“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 ministry said.