The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its in-principle approval for setting up a major port at Vadhavan near Dahanu in Maharashtra.
The total cost of the project is likely to be Rs 65,544.54 crore. Vadhavan port will be developed on land lord model. A special purpose vehicle (SPV) will be formed with the Jawaharlal Nehru Port Trust (JNPT) as the lead partner with equity participation equal to or more than 50 percent to implement the project.
The SPV will develop the port infrastructure including reclamation, construction of breakwater, besides establishing connectivity to the hinterland. All the business activities will be undertaken under PPP mode by private developers.
The Vadhavan Port has a natural draft of about 20 mtr close to the shore, making it possible for it to handle bigger vessels. Development of Vadhavan Port will enable call of container vessels of 16,000-25,000 TEUs capacity, giving advantages of economies of scale and reducing logistics cost.