13 Jul 2012 5:06 PM from CapEx
Suparna Chattopadhyay

Essar’s Deep draft coal berth project at Paradip gets forest clearance

Project to be commissioned by July 2014

Ministry of Environment & Forest (MoEF) has given forest approval to Paradip Port Trust’s all weather deep draft coal berth project at Paradip, Orissa. The project had already received MoEF’s environment clearance in January 2011 and state forest clearance in January 2012.

The Rs.5.5 billion project was awarded to Essar Shipping Ports and Logistics Ltd. (ESPPL) in August 2009, on build, operate and transfer basis (BOT) on a 30 year concession. A special purpose vehicle (SPV) Essar Paradip Terminals Ltd (EPTL) was formed to execute the project. Paradip Port has formally informed Essar Shipping to start construction work on the project.

Rajiv Agarwal - Managing Director of Essar Ports have been quoted saying, that the company would be commencing construction work on the project soon, and would target commissioning the project within 24 months.

The project was announced in January 2008 with an initial investment of Rs.3.8 billion which was later revised to Rs.4.8 billion and then to Rs.5.5 billion. Cabinet Committee on Economic Affairs (CCEA) approved the project in January 2009. This coal berth once constructed, will have 36 acres of developed- stacking area and will handle 14 million tonnes of coking coal per annum.