Cabinet approves Deepening and Optimization of Inner Harbour Facilities at Paradip Port
Part of: GS Prelims and GS-III – Infrastructure
In news
Cabinet approved recently Deepening and Optimization of Inner Harbour Facilities.
Development of Western Dock on Build, Operate and Transfer (BOT) basis under PPP mode was also approved to handle cape size vessels at Paradip Port.
Approved by: Cabinet Committee on Economic Affairs chaired by Prime Minister
Key takeaways
On commissioning of the project, it shall cater to the requirement of coal & limestone imports besides export of granulated slag & finished steel products.
The project shall also facilitate (i) de-congestion of the Port, (ii) reduce Sea freight making coal imports cheaper, and (iii) boost the industrial economy in the hinterland of the port leading to creation of job opportunities.
Important value additions
Paradip port
Paradip Port Trust (PPT), a Major Port under Government of India and administered under the Major Port Trusts Act, 1963, was commissioned in 1966 as a mono commodity port for export of iron ore.
Location: Odisha
Build-Operate-Transfer (BOT) Contract
A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships.
The BOT scheme refers to the initial concession by a public entity such as a local government to a private firm to both build and operate the project in question.
After a set time frame, typically two or three decades, control over the project is returned to the public entity.
