The proposed iron ore terminal project at Paradip Port Trust (PPT) is facing inordinate delay because of lack of environment and forest clearances, and court cases over relocation of iron ore plots.
Blue Water Iron Ore Terminal, a special purpose vehicle floated by the Hong Kong-based Noble Group, in partnership with Gammon Infrastructure Projects and MMTC, secured the project in July 2009. However, there has been no progress since then because of the above reasons.
Meanwhile, the project awardees are reportedly losing interest in the project mainly because of factors like the volatility in the global iron ore prices and the uncertainty over domestic availability of ore due to the court order banning iron ore mining.
Media reports suggest that the port authority plans to retender the 10-million tonne per annum capacity terminal project.
At the time of awarding, the project was estimated to cost Rs 506.30 crore and it is not known by how much the cost would have risen by now. Some reports suggest that the delay raised the project cost to around Rs 700-800 crore.
On completion, the berth is to handle Panamax bulk carriers up to 125,000 dwt capacity. PPT plans to provide the supporting facilities like dredging of the channel, water in front of the berth, Railway connectivity and back-up area.
Besides, the port is to incur additional expenditure for relocating the CISF complex, iron ore plots leased to private parties, and upgradation of electrical facilities.
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