Government approves Rs 3,000 crore project for Paradip port – Business News

Government approves Rs 3,000 crore project for Paradip port – Business News

The government said on Wednesday that it has approved a Rs 3,000-crore project to convert Pardeep Port into a world-class port by setting up a dock.

Ports, Shipping and Waterways Minister Mansukh Mandavia on Wednesday decided to set up a Western dock by the Union Cabinet.

“The cabinet has approved setting up of a western dock at Paradip Port at a cost of Rs 3,000 crore which will convert the port into a world-class and modern port. …. This decision has been taken with a future outlook as the Prime Minister is emphasizing on the development of the eastern states, “Mandavia briefed the media after the cabinet meeting.

Paradip port in Odisha is one of the 12 major ports controlled by the center. Mandavia said that the port handles about 115 metric tonnes of cargo which is likely to increase to around 400 metric tonnes by 2030 and it was decided to set up a western dock to attract larger vessels with a capacity to handle 1.5 tonnes of cargo .

He said that after the project the port can easily handle very large vessels which require a draft of 18 meters and these ships can dock here as a result of reduction in logistics costs.

The Minister said that in the current global competitive environment, promoting EXIM trade is the need of the hour and it will provide employment to millions of people.

He said that based on the stress of the Prime Minister’s “best of all waste”, it has also been decided to sell the dredging material and Rs 86 crore worth of dredging material has already been sold.

The Ministry of Ports, Shipping and Waterways said in a statement that the project, approved by the CCEA, related to deepening and optimization of internal port facilities, including the construction, operation and transfer (BOT) basis of the Western Dock under Public-Private Partnership (PPP) mode. is. To handle cape-sized vessels at Paradip Port ‘.

“The estimated cost of the project is Rs 3,004.63 crore. This includes development of new Western Dock on BOT basis and capitalization by selected concessioners at a cost of Rs 2,040 crore and Rs 352.13 crore respectively; And the investment of Paradip Port will be Rs 612.50 crore towards providing common supporting project infrastructure.

It added that the proposed project envisages facilities to handle cape-sized vessels in two phases of 12.50 MTPA with a capacity of 25 MTPA (million tonnes per annum) by each BOP concessioner.

The period of concession will be 30 years from the date of award of concession. The Paradip Port Trust (Concession Authority) will facilitate the extension of breaking infrastructure of the common auxiliary project and other ancillary functions such as cape-sized vessels.

In the statement on the commissioning of the project, it said, considering the large number of steel plants set up in the hinterland of Paradip Port, it would meet the import requirement of coal and limestone besides exports of granular slag and finished steel products. The project will also ease port exit, reduce coal imports, make coal imports cheaper, and boost the industrial economy in the interior of the port, creating employment opportunities.

Paradip Port Trust (PPT) was commissioned in 1966 as a mono commodity port for the export of iron ore. Over the past 54 years, the Port has transformed itself to handle a variety of EXIM cargo including iron ore, chrome ore, aluminum ingots, coal, POL, fertilizer raw materials, limestone, clinker, finished steel products, containers, Etc.

In particular, the demand for coking coal and flux imports and exports of finished steel products is increasing, the statement said, with steel installed in port construction necessary to build the port’s required capacity to meet port requirements Given the number of plants.

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