Vedanta's port project to be ready by Q4

The Rs 675-crore mechanised coal-handling facility of Vedanta Resources Plc at Visakhapatnam port in Andhra Pradesh is all set to go on stream by the fourth quarter of 2011-12.

The project will be implemented under the company's flagship firm Sterlite Industries, along with an Australian partner.

The company was the successful bidder for mechanisation of the coal handling facility at the outer harbour of Visakhapatnam port on the east coast of India. This is based on public private partnership (PPP) model.

The company has a 74 per cent equity interest in Vizag General Cargo Berth Pvt Limited (VGCB), a special purpose vehicle formed as a joint venture between the company and Australia-based Leighton Contractors India (Private) Ltd.

According to the company's annual report, the initial capacity of the upgraded berth will be 10.2 million tonnes per annum and can be upgraded to 12.5 million tonnes per annum.

VGCB entered into a concessionaire agreement on October 8, 2010, with Vishakapatnam Port Trust for mechanisation of the coal-handling facilities and upgradation of the general cargo berth on a build-operate-transfer basis for 30 years commencing on the date of award of concession. The expected cost of the project is Rs 675 crore and construction of the berth is expected to be completed by mid-2012.

The company was also declared the successful bidder for Paradip Port’s multicargo berth, with a bid of around Rs 390 crore.