Cabinet decision on Deendayal Port in Gujarat will benefit many states: PM Modi

New Delhi [India], October 12 : Prime Minister Narendra Modi on Wednesday hailed the Union Cabinet's decision to approve the development of a multi-purpose cargo berth and container terminal in Deendayal Port-Kandla at Tuna Tekra in Gujarat on the Gulf of Kutch and said it will benefit many states.
The Prime Minister said that this decision will benefit many states which do not have access to the coastline.
"An important Cabinet decision, which will drive India's efforts of port-led development and becoming a hub for trade. This decision will also benefit many states which do not have access to the coastline," PM Modi said in a tweet.
Earlier today, the Cabinet Committee on Economic Affairs approved the development of a multipurpose cargo berth and container terminal at Deendayal Port-Kandla at Tuna Tekra in Gujarat on the Gulf of Kutch.
The cargo will be developed on Build, Operate and Transfer (BOT) basis under Public Private Partnership (PPP) mode.
The total estimated cost of the project is Rs 2,250.64 crore. The cost of Rs 1719.22 crore will be borne by the Concessionaire for the 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, according to an official statement released after the cabinet meeting.
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 a 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 the 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, according to a statement released by the Ministry of Ports, Shipping and Waterways.
An official release said 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 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.
The project consists 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.
Initially, the project will cater 15 m 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 the liberty to handle vessels up to 18m draught by deepening and 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 the average rise of the high tide.
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 Gujarat.
It primarily services northern India, including the landlocked states of Jammu and Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan.