Cabinet approves excavation and improvement of internal ports, including development of Pardeep port's western jetty

New Delhi; The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved important projects for the improvement of the port of Paradip. According to the cabinet decision, deep dug and improvements will be made to the inner harbor, including the development of the western jetty at the port of Pardip for cap-size shipping. The project will be implemented on the basis of construction, management and transfer (BOT) through public-private partnership (PPP).

Financial expenses:

The project is estimated to cost Rs 3,004.63 crore. This includes development and major excavations on the basis of the BOT of the new West Jetty by selected discount recipients. It will cost Rs 2,040 crore and Rs 352.13 crore, respectively. The Port of Paradip will invest Rs 612.50 crore to provide infrastructure for general support projects.

Details:

The proposed project aims to build a western jetty basin. It will be built by a select BOT discounting company. As a result, the cape-capable ship will operate at a jetty, with a total capacity of 12.50 million tonnes per annum in two phases, increasing to 25 million tonnes per annum. The discount period will be 30 years from the date the discount is paid. The Port of Paradip Trust (Discount Authority) will provide support for infrastructure projects such as breakwater extensions and other ancillary services for the operation of cap-size ships.

Implementing strategies and goals:

The project will be developed on the basis of BOT by the selected rebate recipients. However, the port will provide general infrastructure projects.

Effect:

Once operational, it will be able to meet the demand for export of coal sludge and steel products as there are a large number of steel plants in the interior province of Paradip, including coal and limestone imports. The project will (i) reduce congestion at the port, (ii) reduce maritime freight fares, make coal imports cheaper, and (iii) create employment opportunities by promoting industrial economies in the vicinity of the port.

Background:

The Paradip Port Trust (PPP) is a major port under the Government of India and has been operating under the Major Port Trust Act, 1963. It was started in 1966 as a product port for iron ore exports. Over the past 54 years, the port has developed and managed a variety of export-import goods (EXG cargo). These include iron ore, chromium ore, aluminum products, coal, fertilizers, lime, clinker, steel products, containers, and more. Given the large number of steel plants present in the interior of the port, the capacity development of the port is essential in view of the increasing demand for imports and exports of coking coal and fluxes and the export of steel products.