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Cabinet Committee approves project to facilitate handling of Capesize vessels at Paradip Port

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The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has approved the project for ‘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 to handle Capesize vessels at Paradip Port’.

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, as well as Paradip Port’s investment 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 Capesize vessels by the selected BOT concessionaire with an ultimate capacity of 25 MTPA (million tonnes per annum) 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 Capesize 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 in the hinterland of Paradip Port. The project shall also facilitate (i) de-congestion of the port; (ii) reduction in sea freight, making coal imports cheaper; and (iii) boosting the industrial economy in the hinterland of the port, leading to creation of job opportunities, said a release.

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