New Delhi: The cabinet committee on economic affairs has approved the revised cost estimates for deepening the shipping channel at Paradip port. The revised cost estimates now stand at Rs253.359 crore.

The deepening of the channel will allow Paradip Port to handle ships of 125,000 dwt, which will be substantially larger than the existing ship capacity of 65,000 dwt. This will also allow the port to handle larger volumes of traffic.

With the deepening of the channels, it is expected that higher capacity vessels will begin to ply the route, as a result of which the port should experience considerable de-congestion.

The higher capacity vessels should also help in pushing down sea freights for bulk cargo in general, and iron ore and coal in particular.

Increased trading activity at the port is expected to boost the industrial climate in hinterland leading to the creation of job opportunities.

The project is likely to be completed in a time span of 60 weeks from commencement.