The diversified Essar group has proposed to build a bulk cargo terminal on river Mahanadi near its Paradip pellet plant with an investment of Rs 150 crore.
“We have received Essar proposal few days back and have not decided on the matter. We may send their application first to water resource department for necessary evaluation,” said a senior government official of state commerce and transport department.
Essar Steel has finished building its six million tonne per annum (mtpa) pellet plant at Paradip, and is waiting for government clearance to complete laying 253 kms pipeline that will connect mines area in Keonjhar to the pellet plant for raw material transportation.
The company is in the process of mechanising a berth allotted to it at Paradip port, which will be used to ship iron ore pellets to its Hazira steel plant and unload other dry bulk cargo required for the pellet plant. Essar has been given a coal berth inside the port area, for importing coking and thermal coal.
The proposed bulk cargo terminal will be built at a cost of Rs 150 crore on the banks of river Mahandi, couple of kilometers away from the company’s pellet plant. This is expected to facilitate integrated operation of the Paradip plant and support the company’s expansion plan to take capacity of the pellet plant from 6 million tonne to 12 million tonne per annum.
Essar Steel had signed a memorandum of understanding (MoU) with Orissa in May 2005 for a six mtpa steel plant at Paradip. The project capacity has since been upgraded to nine mtpa.
The proposed terminal will be designed to handle import of raw materials including coal, limestone, ore concentrates as well as evacuate finished steel products and other intermediate products manufactured at the Paradip Integrated Steel Complex. As per its plan, Essar will construct 1,000 meter long jetty and 1,500 meter water front on the Mahanadi river.