Cabinet approves development of Container Terminal at Tuna-Tekra

No: -- Dated: Oct, 12 2022

Cabinet approves development of Container Terminal at Tuna-Tekra, Deendayal Port on Build, Operate & Transfer (BOT) basis under Public-Private-Partnership (PPP) mode

The Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister Shri Narendra Modi has approved development of Container Terminal at Tuna-Tekra, Deendayal Port on Build, Operate & Transfer (BOT) basis under Public-Private-Partnership (PPP) mode.   

The estimated cost of Rs 4,243.64 crore will be on the part of the Concessionaire and an estimated cost of common user facilities of Rs 296.20 Crore will be on the part of the Concessioning Authority toward development of common user facilities.

Impact:

On commissioning of the Project, it shall cater to the future growth in Container Cargo traffic. From 2025, a net gap of 1.88 Million TEUs shall be available which can be catered by tune Tekra Development of a state-of-the-art container terminal at Tuna-Tekra will give it a strategic advantage as it will be the closed container terminal serving the vast hinterland of northern part of India (Jammu and 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. 

Details:

1. The proposed project is proposed 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 shall be responsible for the design, engineering, financing, procurement, implementation commissioning, operation, management and maintenance of the Project under the Concession Agreement (CA) to be executed by the Concessionaire (BOT Operator) and the Concession Authority (Deendayal Port Authority) for a period of 30 (thirty) years for handling designated cargos.  The Concessioning Authority shall be responsible for common supporting infrastructure viz., common Access Channel and common road.
2. The Project consists of construction of an off-shore berthing structure for handling three vessels at a time with allied facilities at cost of Rs 4,243.64 Crore and handling capacity of 2.19 Million TEUs per annum.
3. Initially, the Project will cater 14m draught vessels of 6000 TEUs and accordingly, common Access Channel will be dredged & maintained by the Concessioning Authority at 15.50m to navigate container vessels of 14m draught all round the clock.  During the concession period, the Concessionaire will have liberty to handle vessels up to 18m draught by deepening/widening its approach channel, berth pocket and turning circle.  The draft of Access Channel may be increased based on mutual agreement between the Concessioning Authority and the Concessionaire on cost sharing at the time of proposal for increasing in draft. 

Background:

Deendayal Port is one of the twelve Major Ports in India and is located on the West Coast of India, in the Gulf of Kutch in the State of Gujarat.  Deendayal Port primarily services northern India, including the land locked Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan. 

Courtesy – Press Information Bureau, Government of India