- The Multipurpose Cargo Berth will come up at Tuna Tekra at Gulf of Kutch at Kandla on Build, Operate and Transfer (BOT) basis under Public Private Partnership (PPP) mode
- A container terminal will come up at Kandla, now known as Deendayal Port, on BOT basis under the PPP mode
NE BUSINESS BUREAU
NEW DELHI, OCT 12
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved two projects—Multipurpose Cargo Berth and Container Terminal— at Kandla port at an estimated cost of over Rs 6,500 crore.
An important Cabinet decision, which will drive India's efforts of port-led development and becoming a hub for trade. This decision will also benefit many states which do not have access to the coastline. https://t.co/M3NpnkpKCC https://t.co/w6iL20v0Sg
— Narendra Modi (@narendramodi) October 12, 2022
The Multipurpose Cargo Berth will come up at Tuna Tekra at Gulf of Kutch at Kandla on Build, Operate and Transfer (BOT) basis under Public Private Partnership (PPP) mode. This project will have an estimated cost of Rs 2,250.64 crore of which Rs 1,719.22 crore will be borne by the concessionaire and Rs 531.42 crore by the Concessioning Authority (Deendayal Port Authority) towards capital dredging of common user access channel and construction of common user road.
In the second project, a container terminal will come up at Kandla, now known as Deendayal Port, on BOT basis under the PPP mode. “The estimated cost of Rs 4,243.64 crore will be on the part of the concessionaire and an estimated cost of common user facilities of Rs 296.20 crore will be on the part of the Concessioning Authority toward development of common user facilities,” the cabinet statement said.
Information and Broadcasting Minister Anurag Singh Thakur said the cargo berth will cater to the future growth in multipurpose cargo (other than container/liquid) traffic. “The projected traffic gap by the year 2026 would be 2.85 MMTPA and by 2030 it would be 27.49 MMTPA. Development of Multipurpose Cargo Berth off Tune Tekra at Gulf of Kutch at Kandla will give it a strategic advantage as it will be the closest container terminal serving the northern part of India – Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan. In addition to increasing the business potential of Kandla, the project will boost the economy and generate employment.”
Deendayal Port is one of the twelve major ports in India and is located on the West Coast of India in the Gulf of Kutch in Gujarat.
In addition to increasing the business potential of Kandla, the project will boost the economy and generate employment.
The project would be developed by the selected Concessionaire on BOT basis. However, the Deendayal Port Authority will develop the common user facilities, according to a statement released by the Ministry of Ports, Shipping and Waterways.
An official release said the project is to be developed on BOT basis by a private developer/Build Operate & Transfer (BOT) Operator to be selected through an international competitive bidding process.
The concessionaire shall be responsible for the design, engineering, financing, procurement, implementation commissioning, operation, management and maintenance of the project under the Concession Agreement to be executed by the Concessionaire (private developer/BOT Operator) and the Deendayal Port Authority for a period of 30 years for handling designated cargoes.
The Concessioning Authority shall be responsible for common supporting infrastructure namely, common Access Channel and common user road.
The project consists of construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs 1,719.22 crore and handling capacity of 18.33 million tonnes per annum.
Initially, the project will cater 15 m draught vessels of 1,00,000 Deadweight Tonnage (DWT) and accordingly, the channel will be dredged and maintained by the Concessioning Authority with 15m draught.
During the concession period, the Concessionaire has the liberty to handle vessels up to 18m draught by deepening and widening in berth pockets and turning circle; and accordingly, the draft of Access Channel may be increased based on mutual agreement between the Concessioning Authority and the Concessionaire on cost sharing and any other aspects subject to such cost-sharing mechanisms as determined at the time of proposal for increase of draft.
Draft of the access channel to be made available to the Concessionaire would be considered as the maximum draft as per the average rise of the high tide.
Deendayal Port is one of the twelve major ports in India and is located on the west coast of India in the Gulf of Kutch in Gujarat.
It primarily services northern India, including the land locked States of Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan.
