Kamarajar Port Ltd (KPL) has signed a concession agreement with SIOTL for modification of its iron ore terminal so that it can handle common user coal.
The decision for modification of the terminal was taken against the backdrop of the ban on export of iron ore by the Supreme Court and the Karnataka government, Shipping Ministry said in a statement.
KPL had entered into a contract with SICAL Iron Ore Terminal Ltd in September 2006 for building the iron ore terminal on 30 years BOT (Built-Operate-Transfer) basis with an approved project cost of Rs 480 crore in two phases of 6 million tonnes each, it added.
Also Read
The licensee developed the first phase of 6 MTPA capacity at an investment of Rs 360 crore. The revenue share was offered at 51.60 per cent. However, the commissioning activities were stalled due to the ban on iron ore export.
"KPL, therefore, decided to convert the terminal to handle common user coal in the said terminal," the ministry said.
After obtaining necessary approvals from the government, bidding process was initiated for modification of existing iron ore terminal on 'as is where is' basis to also handle the coal at the port on Design-Built-Finance-Operate-Transfer basis, it added.
SIOTL has offered a revenue share of 55.524 per cent, the ministry said, adding the conversion work will commence in October 2016 and will be commissioned within twelve months from the date of commencement of work.
