Sical Iron Ore Terminal (SIOT) has signed a licence agreement with Kamarajar Port Ltd (KPL) to modify the existing iron ore terminal on an “as is where is” basis to handle common user coal, according to a press release.

KPL in September 2006 entered into an agreement with SIOT to develop an iron ore terminal for a 30-year period on a Build, Operate and Transfer basis at a project cost of ₹480 crore. The terminal was to be developed in two phases of 6 million tonnes per annum (MTPA) each.

Export ban

The licensee developed the first phase of 6 MTPA capacity at an investment of ₹360 crore and revenue share of 51.60 per cent. However, the terminal’s commissioning was stalled due to a ban on iron ore export by the Supreme Court and Karnataka government.

KPL decided to convert the iron ore terminal to handle common user coal. Three parties participated in bidding and finally the project was awarded to SIOT, which offered revenue share of 52.524 per cent, and a Concession Agreement was signed on July 11.

Conversion work would commence in October and the terminal will be commissioned within 12 months from the date of commencement of work, the release said.

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