Paradip Port invites bids for ₹2,392-cr terminal

Paradip Port Trust has invited initial bids from private players to build a 25-million-ton (mt) capacity dry bulk cargo terminal at an estimated cost of ₹2,392.13 crore. The private operator winning the deal will develop, operate and maintain the terminal for 30 years. The task of deepening the Western Dock basin and the navigation channel up to the berths, including the turning circle for handling of Cape size vessels, will vest with the terminal operator. The terminal project will be built in two phases of 12.5 mt capacity each. The construction period for Phase 1 will be 36 months from the date of award of concession. The construction work for Phase 2 will begin from the date Phase 1 starts commercial operations and will be completed in 24 months. Paradip Port Trust will set the minimum royalty per metric ton while inviting price bids. The project will be awarded to the bidder quoting the highest royalty per metric ton above the reserved royalty. The private operator will have to handle a minimum guaranteed cargo (MGC) of 8.75 mt and 17.5 mt for Phase 1 and Phase 2 of the project, respectively. It will have to pay the contractually-mandated royalty amount for the MGC along with damages if it fails to achieve the MGC in a year.