CCEA approves Rs2,250.64 cr project to develop multipurpose cargo berth at Kandla
14 Oct 2022
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The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved development of Multipurpose Cargo (other than container/liquid) berth off Tuna Tekra in the Gulf of Kutch along the Kandla cost, on Build, Operate and Transfer (BOT) basis under public private partnership (PPP) mode.
The total estimated cost for development of multipurpose cargo berth (including dredging works alongside the berth, turning circles and approach channel) is Rs2,250.64 crore, of which Rs1,719.22 crore will be borne by the concessionaire and the remaining Rs531.42 crore by Deendayal Port Authority, the concessioning authority, towards common user facilities such as capital dredging of access channel and construction of common user road.
On commissioning of the project, it 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 (other than container/liquid) berth will give Kandla a strategic advantage as it will be the closest port serving the vast hinterland of northern part of India (including the states of 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.
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 will 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 private developer and the Deendayal Port Authority, which will be for a period of 30 years, for handling designated cargoes.
The project included construction of an offshore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs1,719.22 crore and handling capacity of 18.33 million tonnes per annum.
Initially, the project will cater 15m 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 liberty to handle vessels up to 18m draught by deepening snd& 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 basis 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 average rise of the high tide.
Deendayal Port is one of the twelve major ports in India and is located on the West Cost 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.
