Essar Ports' coal terminal development project at Paradip Port held up since last two years due to a pending State Forest Clearance is now likely to move forward. The State forest clearance has come through recently.

Based on this, the Central Government's forest clearance to be given by the Ministry of Environment and Forest will now be processed.

In November 2009, Essar Ports signed the concession agreement to develop the 14 million-tonne a year capacity coal handling terminal in Paradip Port.

Mr Rajiv Aggarwal MD of Essar Ports told Business Line that “Though the construction cost is hedged, the total project implementation cost for Essar Ports will be higher on account of higher interest during construction costs with interest rates touching 13%.”

The construction cost for Essar Ports will not go up because of this delay as it has already entered into fixed price, rupee-denominated contracts, with Essar Projects, another Group company. But, the interest during construction cost will have to be borne by Essar Ports.

(Sourced from BL)