PPT signs pact with Essar for Rs 408 cr coal berth

Paradip Port Trust (PPT) has entered into a concession agreement with Essar Paradip Terminals Limited for construction of a deep draught coal berth on Build, Operate and Transfer basis at the cost of Rs 408.80 cores. The berth will be completed in three years.

Under the public private partnership (PPP) scheme of the government of India, PPT had floated global tenders for construction of the berth on BOT basis and 5 bidders including Essar Paradip Terminals Ltd were short listed.

PPT will provide all supporting facilities like dredging of channel and the berth, railway connectivity and back-up area at an estimated cost of Rs 70.21 cores.

The agreement was singed by K. Raghuramaiah, chairman, PPT and K.K. Sinha, chief executive officer, Ports and Terminal Business, Essar.

On completion of the coal berth, the cargo handling capacity of the port will go up by 10 million tonnes per annum. Since the dredging of the channel is in progress, the depth of the proposed channel and berth will be 17.1 meters which will facilitate handling large cape size vessels up to 1.25.000 DWT. The concessionaire, Essar Paradip Terminals Ltd has offered a revenue share of 31 per cent to the port during the concession period of 30 years.

This is the second project under PPP mode to be implemented at Paradip port as per the new model concession agreement approved by the cabinet.

Deputy Chairman, PPT, Biplav Kumar, secretary, Pravat Nanda, other trustees of PPT, senior officials of Essar Paradip Terminals Ltd, stevedores, shipping agents, exporters and importers were present during the signing of agreement between PPT and Essar.