New Delhi, Jan 2 : The Cabinet Committee on Economic Affairs today approved the project of construction of deep draught iron ore berth at Paradip Port on Build, Operate and Transfer (BOT) basis at an estimated cost of Rs. 591.35 crore.

Out of total cost, Rs. 506.25 crore will be borne by the BOT operator while Rs. 85.10 crore will be borne by the Paradip Port Trust.

The length of the approved BOT iron ore berth would be 370 meter, alongside depth of (-)17.1 meter which will be capable of handling vessels of 1,25,000 Dead Weight Tonnage (DWT) and will have developed stacking area of about 82,125 sqm.

The project is to be implemented within a period of 36 months from the date of award of the concession.

The project will help in de-congestion of Port due to handling of Iron-ore in higher capacity vessels upto 1,25,000 DWT.

It will reduce Sea freight, which will make Iron-ore exports more competitive in the International market.

The project will boost the industrial economy in the hinterland of Port leading to creation of job opportunities. (ANI)