By Bizodisha Bureau, Bhubaneswar, October 7, 2015 : Decks are cleared for  mechanisation of three Berths at the Paradip Port at an estimated cost of Rs 1,438 crore through private investment with the approval of the proposal by the Union government on Wednesday. 

The work will be undertaken under the build, operate and transfer mode, Nitin Gadkari, Road Transport, Highways and Shipping Minister said after a meeting of the Cabinet Committee on Economic Affairs.

The total thermal coal export handling capacity at Paradip Port will reach 50 million ton after the completion of the mechanization project. This will help the port to meet the growing demand of thermal coal over the next three to four years.

“This mechanisation project 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. The project will also create additional employment opportunities,” said a press statement.

The project is scheduled to be completed within three years from the date of award of concession.

The project envisages mechanisation of East Quay [EQ] 1, 2 and 3 berths to increase their capacity from the existing 7.85 million ton [mt] to 30 mt. With this the total thermal coal export handling capacity at Paradip Port will reach 50 million tons. This will help the port to meet the growing demand of thermal coal over the next three to four years.

The Paradip Port handled 71.01 mt cargo in 2014-15, as against the previous year’s traffic of 68 million ton, registering a growth of 4.42 per cent year-on-year. As per the Paradip Port, the total revenue total revenue was Rs 1,059.50 crore in 2014-15 with operating revenue of Rs 920.94 crore. The estimated cost of the project is Rs 1,437.76 crore of which Rs 1,412.76 crore will be spent by the concessionaire. The remaining Rs 25 crore will be spent by the Paradip Port Trust on dredging, a press release added.

This mechanisation project will improve the operational efficiency and reduce transaction cost for thermal power plants dependent on coal supply through Paradip port, it added.