The Indian government on Thursday approved a Rs.845.41 crore project at Vishakhapatnam port for handling iron ore to increase its capacity by 23 million tonne per annum (MTPA), reports said, quoting an official.
He said, "The Cabinet Committee on Economic Affairs has approved the project for up-gradation of existing facility and creation of a new facility at Visakhapatnam Port Trust for iron ore handling in two phases on design, build, finance, operate and transfer (DBFOT) basis at an estimated cost of Rs.845.41 crore," an official statement said.
The project will be taken up for implementation under the Public-Private-Partnership mode and the entire investment on it will be made by the concessionaire, the statement said.
In the first phase, up-gradation of existing mechanized iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs.580.89 crore, which will add a capacity of 16.2 MTPA, while in the second phase, creation of new mechanized facility at West Quay-1 (WQ-1) berth in inner harbour will be taken up at an estimated cost of Rs.264.52 crore involving capacity addition of 6.8 MTPA, the statement said.
The phase II facility will be taken up after attaining the threshold limit of 12.5 million tonne of cargo handling at Outer Harbour or two million tonnes of cargo handling at Inner Harbour, whichever is earlier.
"However, there is no bar on the operator to commence Phase II on the date of award of concession. Phase I of the project will be completed by June 2015 and Phase II, within two years of its commencement," it said.
The project will create additional employment opportunities and lead to the socio-economic development of the region, it added.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.