India approves Paradip Port PPP project

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India approves Paradip Port PPP project

The government of India has approved the PPP project for the mechanisation of East Quay (EQ) Berths-1, 2 and 3 at Paradip Port.

Specifically, the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has given its approval to the project, which will be developed on build, operate and yransfer (BOT) basis, under PPP mode for handling thermal coal exports.

The project envisages mechanization of EQ 1, 2 and 3 Berths to increase their capacity from the existing 7.85 million tonnes to 30 million tonnes. After completion of the project, the total thermal coal export handling capacity at Paradip Port will reach 50 million tonnes. This is expected to help the port to meet the growing demand of thermal coal over the next three to four years.

The estimated cost of the project is Rs.14.38 billion (US$220.8 million), of which Rs. 14.1 billion (US$217 million) will be spent by the concessionaire and the remaining will be spent by the Paradip Port Trust on dredging.

This mechanisation project, which is scheduled to be completed within three years from the date of award of concession, 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.

Paradip Port is an artificial, deep-water port on the East coast of India in Jagatsinghpur district of Odisha. It is situated at confluence of the Mahanadi river and the Bay of Bengal. The port, which operates an autonomous railway system with its own railway station, has handled 70 million tonnes of cargo in 2014-15 and registered a profit of Rs9.21 billion (US$141.4 million). It is one of the 12 major ports of India serving the eastern and central parts.

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