Petroleum and Natural Gas Minister Dharmendra Pradhan thanked the Prime Minister and the Cabinet Committee on Economic Affairs (CCEA) for approval to 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 estimated cost of the project is Rs1,437.76 crore of which Rs1,412.76 crore will be spent by the concessionaire. The remaining Rs25 crore will be spent by the Paradip Port Trust on dredging. 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.
The project is scheduled to be completed within 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.
This will help the port to meet the growing demand of thermal coal over the next three to four years.
Pradhan said that the project would improve the operational efficiency in the Paradip Port and thereby reduce transaction cost for thermal power plants dependent on coal supply through the Paradip Port.
The project would also create additional employment opportunities for the youths of Odisha. This would help development of the Paradip region as a major hub for economic and industrial growth.