Paradip-I Coal

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Essar Bulk Terminal Paradip (EBTPL) was to implement a project to develop and operate a deep draught coal berth with a proposed depth channel and berth was 17.1 meters which would facilitate handling large cape size vessels up to 1,25,000 DWT (deadweight tonnage) at Paradip Port in Orissa, India. Essar Bulk Terminal Paradip (EBTPL) is a subsidiary of Essar Paradip Terminals which was owned by Essar Shipping Ports and Logistics Ltd and Essar Shipping and Logistics Ltd (Essar group). EBTPL won the project via an international tender in which five bidders were short listed. Essar Paradip Terminals Ltd offered a revenue share of 31% to the port during the concession period of 30 years. In Nov 2009, state-owned Paradip Port Trust Tuesday signed a 30 year BOT concession agreement with Essar Paradip Terminals. The concessionaire also agreed to have the project operational within 36 months of the date of the concession was signed. Paradip Port Trust agreed to provide all supporting facilities like dredging of channel and the berth, railway connectivity and back-up area at an estimated cost of Rs 70.21 cores. The project cost of was estimated to be INR5.59 billion (US$ 122.2 million). In October 2010, Essar Bulk Terminal Paradip (EBTPL), part of Essar Shipping Ports and Logistics (ESPLL), raised INR 4.10 billion to partly finance the project. The credit deal was signed with YES Bank and L&T Infrastructure Finance Company, each of whom have loaned out 50% of the finance needed. In December 2010, the project company indicated that all the financing required for this project was secured with a debt/equity ratio of 73/27.