The Hindu Business Line : Essar group to build coal berth at Paradip

Kolkata, Nov. 10 Paradip Port Trust (PPT) on Tuesday signed the concession agreement with Essar Paradip Terminals Ltd, an SPV floated by the Essar Group, for construction of a deep draught coal berth in the port on a BOT basis.

Mr K. Raghuramaiah, Chairman of PPT, and Mr K.K. Sinha, CEO, Ports and Terminal Business, Essar Group, signed the agreement.

According to the agreement, the deep draught coal berth will be developed by the concessionaire at an estimated cost Rs 408.80 crore. PPT will provide all supporting facilities like dredging, railway connectivity and backup area at an estimated cost of Rs 70.21 crore.

The construction of the berth will be completed within 36 months from the date of award of the concession. On completion of the construction of the berth, the port’s cargo handling capacity will be up by 10 million tonnes.

The concessionaire, i.e., Essar Paradip Terminals Ltd, has offered a revenue share of 31 per cent to the port during the concession period of 30 years.

It might be noted that Essar Paradip Terminals emerged as the successful bidder out of a total of five firms shortlisted for the purpose.

This is the second project under PPP (public private partnership) to be implemented by PPT as per the new model concession agreement as approved by the Cabinet. The tariff has been fixed upfront by the Tariff Authority for Major Ports (TAMP), according to PPT sources.

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