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In a move to initiate the construction of a greenfield container port at Vadhvan in Maharashtra, the Jawaharlal Nehru Port Authority (JNPA) has invited Expressions of Interest (EoI) from investors and private developers. This ?20,600 crore project involves reclaiming land for the port and constructing an offshore protection bund.
The project will include dredging the approach channel, harbour basin, and dredging material for filling and reclamation of a total offshore area of 1,227 hectares, along with the maintenance of the developed area, sources told businessline. "Located offshore, the projected reclamation will be roughly 4-6 km away from the Vadhvan coast," JNPA said in response to a questionnaire sent by businessline.
The Vadhvan port is being developed in two phases, costing a total of ?76,220 crore. The EoI is open to government organisations, banks, developers, companies, financial institutions, or joint ventures/consortiums registered in India and engaged in major port or infrastructure projects either in India or globally.
The EoI has been floated by Vadhvan Port Project Ltd, a special purpose vehicle formed to implement the project on a public-private partnership basis (PPP). The container port project, with a total capacity of 24.5 million TEUs, will have equity from JNPA and the Maharashtra Maritime Board (MMB). Earlier this month, JNPA chairman Unmesh Wagh told businessline in an exclusive interview that the construction of roads connecting the port would begin after this monsoon and the land reclamation work would start next year.
According to the detailed project report (DPR), approximately 200 million cubic meters of reclamation material will be required for the proposed port. The land reclamation and construction of the offshore protection bund project will be implemented in a PPP mode under the Hybrid Annuity Model (HAM).
Under this model, the applicant will be responsible for financing, executing, maintaining, and transferring the facility to JNPA after the concession or authorization period. The HAM model stipulates that the first 40 percent of payment is made as a fixed amount in five equal instalments, while the remaining 60 percent is paid as a variable annuity amount towards the balance bid amount, along with interest on the residual debt after the projects completion, depending on the value of assets created, states the EoI.
Phase 1 of the project is expected to handle traffic of about 6.85 million TEUs by 2030, increasing to 23.2 million TEUs in the master plan stage (Phase 2) of development by 2040. Phase 1 of the project is expected to cost ?50,000 crore. |
