Essar signs agreement with Paradip Port

Essar Paradip Terminals Limited (EPTL), a special purpose vehicle formed by Essar Shipping Ports and Logistics Limited (ESPLL) and Essar Shipping and Logistics Limited, today signed a concession agreement with the Paradip Port Trust for the development of a 14 Million Metric Tonne Per Annum (MMTPA) deep draught coal berth at Paradip Port in Orissa.

"EPTL will implement this project on a Build, Operate and Transfer (BOT) basis and the completion period for the same would be 3 years. The project entitles the port to a revenue share of 31 per cent and the concession period is for 30 years," the company said in a release. The concession agreement was signed today at Paradip by KK Sinha, director, EPTL on behalf of Essar Group and K Raghuramiah, chairman, Paradip Port Trust.

"The project is being undertaken by Essar Paradip Terminals Ltd at a cost of Rs 550 crore, the financial syndication for which would be launched soon. We have won this project against competitive bidding and given Essar’s track record in the ports and terminals business, I am confident that the financial community will repose their trust on it as they have been doing so with all our earlier projects,” said V Ashok, director, ESPLL while commenting on the financials of this agreement.