Essar Paradip Terminals Ltd, a special purpose vehicle formed by Essar Shipping Ports & Logistics Ltd and Essar Shipping & Logistics Ltd, signed a concession agreement with the Paradip Port Trust for the development of a 14 million metric tonnes per annum (MTPA) deep draught coal berth the port in Orissa.
The project has been awarded on an 'operate and transfer' basis and is to be completed in three years. The agreement entitles the port to a revenue share of 31 per cent, and the concession period is for 30 years.
The concession agreement was signed by K K Sinha, director of Essar Paradip Terminals Ltd, and K Raghuramiah, chairman of the Paradip Port Trust.
Sinha said on the occasion, ''I am sure that the Essar Group in association with the PPT will successfully achieve the timelines mentioned and this would be the beginning of a long-standing partnership between us.''
V Ashok, director of Essar Shipping Ports & Logistics Ltd, said that ''The project is being undertaken by Essar Paradip Terminals Ltd at a cost of Rs550 crore, the financial syndication for which would be launched soon. We have won this project in competitive bidding.''