You are here: Home » Companies » News
Business Standard

Hyundai Steel evinces interest for building iron ore terminal at Paradip

Others, who took part in the pre-bidding proces were Essar Steel, Jindal Steel and Power Ltd, Elicon Enginerring

Sadananda Mohapatra  |  Bhubaneswar 

Five including Korean steel maker Hyundai Steel expressed their willingness to construct an iron ore terminal at Paradip port during a pre-bidding conference held at the port.

Others who took part in the pre-bidding conference were Essar Steel, Jindal Steel and Power Ltd, Pune-based Elicon Engineering and state-owned National Buildings Constructions Conference Ltd.

Paradip Port Trust (PPT) has floated a fresh global tender for building an iron ore terminal, as the original winner of the contract could not initiate work for the cargo handling facility since 2009.

The fresh tender has been floated on Built, Operate and Transfer (BOT) basis.

The proposed terminal will be a deep drought one meant for carrying iron ore cargos. The tender document did not specify the capacity of the terminal, but in its earlier proposal the bidder had submitted plans for a terminal with 10 million tonne a year capacity.

Currently the port has a 10 million tonne a year iron ore cargo berth. Odisha has the potential to export about 30 million tonne ore every year.

The cost of the terminal was earlier fixed at Rs 506.30 crore. But in the recent tender document the port revised the expenditure to be incurred in building the terminal to Rs 591.31 crore.

In July 2009, the concession agreement for the terminal between PPT and Blue Water Iron Ore Terminal Pvt Ltd, a special purpose vehicle floated by the Hong Kong-based Noble Group, in partnership with Gammon Infrastructure Projects and MMTC, was signed.

However, problems in getting environment and forest clearances delayed the project construction work, and court cases over relocation of iron ore plots within port area created further uncertainties.

Other factors such as softening iron ore rates globally amid concerns of supply of iron ore due to severe restrictions in Odisha did not let the project to take off, port sources said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, August 09 2013. 18:41 IST
RECOMMENDED FOR YOU
.