Indian and global financial institutions such as Power Finance Corporation, Rural Electrification Corporation and Japan International Cooperation Agency have shown interest to fund the ₹76,220-crore Vadhavan Port project which was approved by the Union Cabinet on Wednesday, Unmesh Wagh, Chairman, Jawaharlal Nehru Port Authority (JNPA) said on Thursday.
“Two financial institutions – PFC and JICA – have shown their willingness to completely fund the project and requested us that we should not go to anyone else,” Mr. Wagh said at a media briefing.
“But, we have not decided whether we should go for Indian institutions or foreign institutions to raise funds,” he said, adding, “We will decide on funding in due course.” The new port will be developed by Vadhvan Port Project Ltd. (VPPL), a special purpose vehicle (SPV) formed by JNPA (74% stake) and Maharashtra Maritime Board (26%), in two phases under the landlord model. The core and common infrastructure including breakwater, dredging, reclamation, shore protection bund, tug berth, approach trestles and unpaved developed land, rail and road linkages, off dock rail yard, rail exchange yard, power and water and internal road will be built by VPPL with at a cost of ₹43,622 crore.
This includes an investment of ₹1,765 crore by the Ministry of Railways for external rail connectivity, ₹2,881 crore for external road connectivity by the Ministry of Road Transport and Highways/National Highways Authority of India and ₹356 crore as depositary works from Maharashtra Jeevan Pradhikaran and Maharashtra State Electricity Distribution Company Ltd.
The remaining project cost of ₹37,244 crore will be invested by the private operators of container terminals, multipurpose berths, coastal cargo berths, RO-RO and liquid berths selected by VPPL. The total debt requirement for the project is estimated at ₹27,283 crore. “This alliance between JNPA & MMB aims to cater to the burgeoning maritime traffic, marking the dawn of a new chapter filled with growth and opportunities,” Mr. Wagh said.
“The strategic placement of the Vadhvan port will facilitate the call of container traffic. The port will bridge international and Indian coasts that will accelerate the economies of scale and mitigate the logistics cost,” he added.
The port will have 9 container terminals, each of 1,000 metres length, 4 multipurpose berths, 4 liquid cargo berths, a Ro-Ro berth, a coastal cargo berth and a Coast Guard berth. It involves reclamation of 1,448 hectares in offshore area and construction of 10.14 km of breakwater, container/cargo storage areas.
It will augment the national container handling capacity by 23.2 million TEUs and will facilitate calling of mega size container vessels capable of carrying 24,000 TEUs.
Published - June 20, 2024 08:46 pm IST
