After months of discussion, the Union Cabinet approved the Rs 76,220 crore Vadhavan Port project in Maharashtra on Wednesday. It was the second meeting of the Narendra Modi administration’s third term. One of India’s biggest port projects, it will act as a gateway port for the future International North-South Transportation Corridor (INSTC) and India-Middle East-Europe Corridor (IMEC).
Vadhavan Port Gets Cabinet’s Approval
The Cabinet also approved a Rs 7,453 crore viability gap finance (VGF) scheme, kicking off the planning for the nation’s first round of offshore wind generating projects. The minimum support price for kharif crops will be raised by an additional 5 to 12.7%, among other considerations.
“The Cabinet decision on developing a major port at Vadhavan in Maharashtra will boost economic progress and also create employment opportunities on a large scale,” Modi said in a post on X.
The Vadhavan Port Project: The Highlights
Vadhavan Port Project Limited (VPPL), a special purpose vehicle established by the Maharashtra Maritime Board (MMB) and Jawaharlal Nehru Port Authority (JNPA) with respective shareholdings of 26% and 74%, will build the port. Vadhavan Port is slated to be developed as a major greenfield deep draft port that is weather-proof.
Public-private partnership (PPP) development of terminals, other commercial infrastructure, and core infrastructure would all be included in the project’s cost, according to a government statement.
The Cabinet also approved the Ministry of Road Transport & Highways’ establishment of rail linkage to the current rail network and the Dedicated Rail Freight Corridor. Along with this, they also approved the Ministry of Railways’ establishment of road connectivity between the port and national highways. This is in order to establish connectivity to the future port.
The world-class maritime terminal facilities will promote PPP and leverage efficiencies and modern technologies. These will help to create state-of-the-art terminals capable of handling mainline mega vessels plying on international shipping lines between the Far East, Europe, West Asia, Africa, and the Americas. Vadhavan Port, on completion, will be one of the top 10 ports in the world,” the Cabinet said in a press release.
A Rs. 38,000 Crore Project?
The port’s plan states that the government will invest a total of Rs 38,000 crore in the project, with the winning bids for the nine terminals expected to provide a sum roughly similar to that which the government would provide.
Furthermore, the Vadhavan Port project’s present cost has increased by Rs 11,000 crore since the Union Cabinet gave its initial in-principle clearance in 2020.
Moreover, environmental issues caused delays in the project in the past. In addition, the local communities had been protesting against the clearance given by the Dahanu Taluka Environmental Protection Authority in August 2023. They cited the possibility of significant environmental damage and loss of livelihood for the communities. In response, the Center has planned initiatives to address their concerns.
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