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MoEF nod sought for three major projects at Visakhapatnam Port

Santosh Patnaik
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Security clearance is awaited for extension of container terminal

An aerial view of Visakhapatnam Port.— Photo: K.R. Deepak
An aerial view of Visakhapatnam Port.— Photo: K.R. Deepak

Visakhapatnam Port Trust (VPT) has submitted the terms of reference to the Ministry of Environment and Forests for taking up work on three major projects involving an investment of over Rs.1800 crore.

Sources told The Hindu that the port authorities have submitted details regarding extension of container terminal at a cost of Rs.633 crore for which nod from the Cabinet Committee on Economic Affairs has been obtained.

Two other projects – the modernisation and augmentation of existing facilities at Ore Handling Complex (OHC) at a cost of Rs.845 crore and development of West Quay North (comprising WQ-7 and 8 berths) at a cost of Rs.393 crore is also being taken up under Design, Build, Finance, Operate and Transfer (DBFOT) basis.

Security clearance is awaited for extension of container terminal to add an additional capacity of 5.4 million TEU. Sources said Ministries of External Affairs and Defence have already cleared it and the issue is now under consideration of the Ministry of Shipping.

For West Quay North, no bids were received. A fresh tender notification will be considered after sometime so as to go ahead with the plan for development of West Quay North for mechanical handling of bulk cargoes like bauxite, blast furnace slag, gypsum, manganese and other types of ore.

Capacity expansion

OHC capacity will be increased from 12 million tonne to 23 million tonne. As per the directive of AP High Court, no final decision will be taken on finalisation of bids without clearance from the court. The OHC project has received green signal from the Planning Commission and it will be placed before the Cabinet Committee on Economic Affairs shortly.

Dredging relevant for these projects will be carried out by the port. OHC developed in 1965 and modified in 1976 has a 4.8-km-long one-way conveyer belt. Several unions are protesting DBFOT route for modernisation of OHC saying it would lead to privatisation. However, the port officials say they are not deviating from rules and are awarding the project to private investors on 30-year concession agreement as per the policy pursued by the Government of India.

VPT’s corporate plan envisages enhancing its existing capacity from 67.33 million tonne to 149 milliion tonne with an investment of Rs.13,940 crore by 2019-20.


  • For West Quay North, no bids have been received

  • OHC project receives green signal; to be placed before Cabinet Committee on Economic Affairs



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