Cabinet approves Development of Multipurpose Cargo

No: -- Dated: Oct, 12 2022

Cabinet approves Development of Multipurpose Cargo (other than Container/Liquid) Berth Off Tuna Tekra at Gulf of Kutch at Kandla on Build, Operate and Transfer under Public Private Partnership Mode

The Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister Shri Narendra Modi has approved development of Multipurpose Cargo (other than Container/Liquid) Berth Off Tuna Tekra at Gulf of Kutch at Kandla on Build, Operate and Transfer (BOT) basis under Public Private Partnership (PPP) mode.

The total estimated cost of Rs.2,250.64 crore [The cost of Rs.1719.22 crore will be borne by the Concessionaire for Development of Multipurpose Cargo Berth (including dredging works alongside the berth, turning circles and approach channel, and Rs.531.42 Crore will be borne by the Concessioning Authority (Deendayal Port Authority) towards capital dredging of common user access channel and construction of common user road].

On commissioning of the Project, it shall 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 Off Tune Tekra at Gulf of Kutch at Kandla will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India (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 would be developed by the selected Concessionaire on BOT basis.  However, the Deendayal Port Authority will develop the common user facilities.

Details:

1. 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 shall 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 Concessionaire (private developer/BOT Operator) and the Concessioning Authority (Deendayal Port Authority) for a period of 30 years for handling designated cargoes. The Concessioning Authority shall be responsible for common supporting infrastructure namely, common Access Channel and common user road.

2. The Project consist of construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs.1,719.22 crore and handling capacity of 18.33 Million Tonnes per annum.

3. 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 & 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 aspects 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.

Background:

          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 the State of Gujarat.  It primarily services northern India, including the land locked States of Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan.

Courtesy – Press Information Bureau, Government of India