Paradip Port is being developed as a world class modern port to handle cape size vessels at an estimated cost of Rs. 3.004.63 crore

The project involves deepening and optimization of inner harbour facilities including development of western dock on build, operate and transfer (BOT) basis under Public-Private Partnership (PPP) mode at Paradip Port. This includes development of the new Western Dock on BOT basis and capital dredging by the selected concessionaire at a cost of Rs. 2,040 crore and Rs. 352.13 crore respectively; and Paradip Port’s investment will be to the tune of Rs. 612.50 crore towards providing common supporting project Infrastructure.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said, "The success of the project is a milestone towards Paradip Port becoming a mega port."

The minister said the project will enhance the Port’s ability to handle Cape Size vessels, will contribute to Port’s capacity addition of 25 MMTPA and will result in improvement in the port efficiency, better cargo handling, increased trade, and also lead to socio-economic growth including employment generation.

The project will facilitate de-congestion of the port, reduce sea freight making coal imports cheaper, and boost the industrial economy in the hinterland of the port leading to creation of job opportunities. The port, after the project, can easily handle very large ships for which 18 metre draft is required resulting in reduction in logistics cost and will boost EXIM trade in the current global competitive environment.

Paradip Port Authority was commissioned in 1966 as a mono commodity port for export of iron ore. In the last 54 years, the Port has transformed itself to handle a variety of EXIM cargo which include iron ore, chrome ore, aluminium ingots, coal, POL, fertilizer raw materials, lime stone, clinker, finished steel products, containers, etc.

Paradip Port Authority (Concessioning Authority) shall provide the common supporting project infrastructure works like breakwater extension & other ancillary works to facilitate handling cape size vessels by the selected BOT concessionaire with an ultimate capacity of 25 MTPA (million tonnes per annum) in two phases of 12.50 MTPA each. The concession period shall be 30 years from the date of award of concession.