The Paradip Port Trust today signed an agreement with a consortium led by Hong Kong-based Nobel Group for construction of a deep-draught iron-ore berth at a total cost of Rs 591.35 crore.
While the construction of the berth will cost Rs 506.30 crore, the Port will spend another Rs 85.05 crore to provide support facilities like dredging.
"The project will add 10 MT per annum capacity to the Port. It will be completed in three years," Paradip Port Chairman K Raghuramaiah told reporters.
After the completion of the project, which has been awarded on a build-operate-transfer basis, the Port will be able to handle cape size vessels of up to 125,000 DWT capacity.
Other partners to the consortium are Gammon Infrastructure and state-run trading company MMTC.
The consortium has formed a special-purpose-vehicle (SPV) Blue Water Iron Ore Terminal for executing the project.
The SPV has offered a revenue share of 36.80 per cent to the Paradip Port during the concession period of 30 years. It will complete the construction in 36 months from the date of the award of the project.
