New Delhi: The government Thursday approved a Rs 845.41 crore project at Vishakhapatnam port for handling iron ore under the PPP mode to augment its capacity by 23 million tonne per annum (MTPA).
"The Cabinet Committee on Economic Affairs has approved the project for upgradation of existing facility and creation of a new facility at Visakhapatnam Port Trust for iron ore handling in two phases on Design, Build, Finance, Operate and Transfer (DBFOT) basis at an estimated cost of Rs 845.41 crore," an official statement said.
The project will be taken up for implementation under the Public-Private-Partnership mode and the entire investment on it will be made by the concessionaire, the statement said.
Upgradation of existing mechanised iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs 580.89 crore in the first phase, which will add a capacity of 16.2 MTPA.
"In Phase II, creation of new mechanised facility at West Quay-1 (WQ-1) berth in inner harbour at an estimated cost of Rs 264.52 crore involving capacity addition of 6.8 MTPA will be taken up," the statement said.
It added that the phase II facility would be taken up after attaining the threshold limit of 12.5 million tonne of cargo handling at Outer Harbour or two million tonnes of cargo handling at Inner Harbour, whichever is earlier.
"However, there is no bar on the operator to commence Phase II on the date of award of concession. Phase I of the project will be completed by June 2015 and Phase II, within two years of its commencement," it said.
The project will create additional employment opportunities and lead to the socio-economic development of the region, it added.
First Published: Thursday, May 16, 2013, 21:45