Cabinet Committee on Economic Affairs has approved the project concerning deepening and optimization of inner harbour facilities at Paradip port.
The proposed project to be carried out at an estimated cost of INR 3,004.63 Crore would include construction of new Western Dock in order to facilitate handling of cape size vessels with an ultimate capacity of 25 mn t pa (million tonnes per annum) in two phases of 12.50 mn t pa each.
The project would be developed by the selected concessionaire on Build, Operate and Transfer (BOT) basis under Public-Private Partnership (PPP) mode. However, the port authority would provide the common supporting infrastructure.
Impact:
Paradip port located at Odisha state has been pivotal for coking coal imports and export of finished steel products, in view of number of steel plants established in the hinterland of the port.
On commissioning of the project, it would cater to the requisite demand of the plants located in the surrounding region. Besides, it will also facilitate:
(i) de-congestion of the port,
(ii) reduce sea freight making coal imports cheaper, and
(iii) boost the industrial economy in the region.
During the first 8 months of FY ’21 (Apr-Nov ’20), Paradip port has handled 72.25 mn t cargo comprising of various commodities, among which coal is having majority share. Notably, it handles the highest coal imports amongst the 12 major ports listed under Indian Port Association (IPA).
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