Gujarat floats global tenders for ₹3,800-cr port project

Gujarat Government has floated tenders for the development of a greenfield port at Nargol in South Gujarat on Build, Own, Operate, Transfer (BOOT) model involving an investment of ₹3,800 crore. The project is to be executed on PPP model with an extended BOOT period of 50 years. In deference to the fact that port projects have huge gestation lags, the government is setting a precedent by keeping the BOOT period for Nargol port development at 50 years, rather than the 30 years usually offered for greenfield port development in the state. This presents the potential port developer with the assurance of a greater return on investment. The proposal also offers interested developers the flexibility to quote discounted waterfront royalty rates in addition to the prevailing system of quoting premiums on base rates.

The major port of JNPT in Mumbai is expected to exhaust its present container handling capacity of 10 million by 2025. This offers Gujarat an opportunity to have a greenfield port in South Gujarat to cater to the EXIM and coastal trade requirements of the sound industrial base in the hinterland comprising of the entire area of South Gujarat, Maharashtra and Madhya Pradesh. Considering the strategic location of Nargol and its proximity to the Dedicated Freight Corridor (DFC) and the Delhi-Mumbai Industrial Corridor (DMIC), the port will handle sizable traffic of containers, dry bulk and liquid bulk cargo. Located about 140-km north of Mumbai and120-km south of Surat, Nargol is envisaged to be a multi-functional port capable of managing solid, liquid, and container cargo with an estimated investment of ₹3,800 crore in the first phase, which will witness a capacity addition of about 40 million tons and will also offer additional investment avenues in other facilities as well.

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Gujarat floats global tenders for ₹3,800-cr port project

NBM Media

NBM Media

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