Business Tidings

New Port to be Built in Maharashtra at a Cost of 65000 Crore, India Will be Named in Top 10 Countries

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Union Cabinet decision: The Union Cabinet has approved the proposal to develop a new port at Wadhawan in Maharashtra at a cost of Rs 65 thousand crores. After its development, India will join the top 10 container port countries of the world.

The government has taken a major decision in the field of infrastructure development. The Union Cabinet has approved the proposal to develop a new port at Wadhawan, Maharashtra at a cost of Rs 65 thousand crores. After the development of Wadhawan port, India will join the top 10 container port countries of the world.

The Union Council of Ministers chaired by Prime Minister Narendra Modi approved the proposal on Wednesday. The country’s largest container port is currently in JNPT in Maharashtra. It caters to the needs of the interior areas of Maharashtra, North Karnataka, Telangana and the interior areas of Gujarat, Madhya Pradesh, Rajasthan, NCR, Punjab, and Uttar Pradesh.

 

Why the new port was needed

The deep draft port is needed for the maintenance of the world’s largest container ships, which will also meet the additional traffic requirements from the JNPT port after full utilization of the planned capacity of 10 million TEUs.

 

Why will it be made in the Slaughter?

According to the news agency INS, JNPT Port and Mundra are the two largest container maintenance ports (only for medium-sized container ships) in the country. Their drafts are 15 meters and 16 meters respectively, while the world’s largest container maintenance modern deep-draft port requires a draft of 18M to 20M. The natural draft at the Wadhwan port near the coast is about 20 meters, which is expected to maintain large ships at this port.

The development of the Wadhawan port will enable the invitation of container vessels of 16,000 to 25,000 TEU capacity. This will provide benefits of increasing the level of economy and lowering logistics costs.

 

From Where Will the Money be put

The cabinet in its decision said that this new port will be developed in the land ownership model. Its cost is expected to be 65,544 thousand crores. A Special Purpose Vehicle (SPV) will be established with Jawaharlal Nehru Port as a top partner. JNPT’s equity participation in implementing this project will be equal to or more than 50 percent.

In addition to establishing connectivity with the SPV infrastructure, the port infrastructure will be developed including land reforms, construction of the breakwater. All business activities will be done by private developers under PPP mode.

The cabinet said in its decision that Jawaharlal Nehru Port Trust (JNPT) is the largest in India right now. It is ranked 28 in the world and has a traffic of 5.1 million TEUs (20-foot equivalent units). Jawaharlal Nehru Port will be the 17th largest container port in the world even after the completion of the fourth terminal with capacity addition of 10 million TEUs by the year 2023.

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