India authorises $9 billion port development project

Indian government authorises $9 billion port development project

The Indian Union Cabinet has authorised the establishment of a major port in Vadhavan, near Dahanu in Maharashtra, India.

Vadhavan Port Project Limited (VPPL), an SPV founded by Jawaharlal Nehru Port Authority (JNPA) and Maharashtra Maritime Board (MMB), would build the project with 74 per cent and 26 per cent shareholdings, respectively.

The Vadhavan Port would be reportedly built as an all-weather Greenfield deep draft mega port in Vadhavan, Palghar District, Maharashtra.

The overall project cost, including the land acquisition component, is approximately INR 76,220 crore ($9.12 billion).

This will entail the creation of core infrastructure, terminals, and other commercial infrastructure through public-private partnerships (PPPs).

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The cabinet also authorised the Ministry of Road Transport and Highways’ establishment of road connectivity between the Port and National Highways, as well as rail linkage to the current rail network and the planned Dedicated Rail Freight Corridor.

The port will include nine container terminals, each 1 kilometre long, four multipurpose berths (including the coastline berth), four liquid cargo berths, a RoRo dock, and a Coast Guard berth.

According to the Indian government, the project entails the reclamation of 1,448 hectares of seabed and the building of 10.14 kilometres of offshore breakwater and container/cargo storage facilities.

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The project aims to generate a total capacity of 298 million metric tonnes (MMT) per year, including about 23.2 million TEU of container handling capability.

The capacities created will also aid EXIM trade flow through IMEEC (India Middle East Europe Economic Corridor) and INSTC (International North South Transportation Corridor).

The project, aligned with the objectives of PM Gati Shakti programme, aims to add to further economic activity and also has the potential for direct and indirect employment opportunities for around 12,000 people.

In May, India and Iran struck a 10-year deal to develop and manage the Port of Chabahar.

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