PFC, JICA ready to finance Rs 76,220 crore Vadhavan port project

PFC, JICA ready to finance Rs 76,220 crore Vadhavan port project


Jawaharlal Nehru Port Authority (JNPA) Chairman Anmesh Wagh on Thursday said Indian and global financial institutions such as Power Finance Corporation, Rural Electrification Corporation and Japan International Cooperation Agency have shown interest in funding the Rs 76,220-crore Vadhawan port project, which was approved by the Union Cabinet on Wednesday.

“Two financial institutions — PFC and JICA — have expressed their willingness to fully fund the project and requested us not to approach anyone else,” Mr Wagh said at a media briefing.

“But, we have not decided whether we should resort to Indian institutions or foreign institutions to raise funds,” he said. “We will decide on funding when the time comes,” he added. The new port will be developed by Vadhavan Port Project Ltd (VPPL), a special purpose vehicle (SPV) formed by JNPA (74% stake) and Maharashtra Maritime Board (26%) under the landlord model in two phases. The core and general infrastructure, including breakwaters, dredging, reclamation, shore protection bunds, tug berths, approach trestles and unpaved developed land, rail and road connectivity, off dock rail yard, rail exchange yard, power and water and internal road will be constructed by VPPL at a cost of ₹43,622 crore.

This includes an investment of ₹1,765 crore by the Ministry of Railways for external rail connectivity, an investment of ₹2,881 crore by the Ministry of Road Transport and Highways/National Highways Authority of India for external road connectivity and an investment of ₹356 crore by Maharashtra Jeevan Pradhikaran and Maharashtra State Electricity Distribution Company Limited in the form of depository functions.

The remaining project cost of ₹37,244 crore will be invested by private operators of container terminals, multipurpose berths, coastal cargo berths, Ro-Ro and liquid berths selected by VPPL. The total loan requirement for the project is estimated to be ₹27,283 crore. ,Shri Wagh said, “This alliance between JNPA and MMB aims to meet the needs of the increasing maritime traffic and marks the beginning of a new chapter full of growth and opportunities.”

He said, “The strategic location of Vadhavan Port will facilitate container traffic. The port will connect the international and Indian coasts, boosting the economy and reducing logistics costs.”

The port will have 9 container terminals, each 1,000 metres in length, 4 multipurpose berths, 4 liquid cargo berths, one Ro-Ro berth, one coastal cargo berth and one Coast Guard berth. It involves reclamation of 1,448 hectares of land in the offshore area and construction of 10.14 km long breakwaters, container/cargo storage areas.

This will increase the national container handling capacity by 23.2 million TEUs and facilitate the calling of larger container ships capable of carrying 24,000 TEUs.



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