NEW DELHI (TIP): 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. The project will be taken up for implementation under Private Public Partnership (PPP) mode on DBFOT basis, that is, the entire investment on the project will be made by the concessionaire.
The project is envisaged to be implemented in two phases. In Phase-l, upgradation of existing mechanized iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs.580.89 crore. This will involve capacity addition of 16.2 MTPA. In Phase II, creation of new mechanized 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. Phase-ll facility at Inner Harbour would be taken up after attaining the threshold limit of 12.5 million tonnes 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. This project will create additional employment opportunities and lead to the socio-economic development of the region.