Jindal Steel and Power Limited consortium wins contract to build new Western Dock at Paradip Port

Mumbai: A consortium of Jindal Steel and Power Limited (JSPL) and Jindal Port Private Limited (JPPL) has been awarded a contract to develop a new dock for Cape-size vessels at the Paradip Port on a build-operate-transfer (BOT) basis.

The consortium will pay a royalty of Rs 54 per metric tonne of cargo handled at the new Western Dock to the Paradip Port Authority, as per the letter of award, a copy of which ET has seen. The dock will be operated by the JSPL-JPPL consortium for a period of 30 years.

Paradip is the closest port to JSPL’s Angul plant in Odisha at about 200 kilometres. It is used by the steelmaker to import limestone and coking coal and to export finished products.

As per the request for quote (RFQ) for the new dock, it will have the capacity to handle 25 million tonnes per annum (MTPA) of dry cargo. The construction is to be completed over five years in two phases of 12.5 MTPA each. The construction will require an investment of up to Rs 2,400 crore according to people in the know.