Cabinet approves development of Multipurpose Cargo Berth at Kandla in BOT Mode
New Delhi, October 13, 2022
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the development of a Multipurpose Cargo (other than Container/Liquid) berth off Tuna Tekra at Kandla 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, an official press reease said.
Of this, a cost of Rs 1719.22 crore will be borne by the concessionaire for the development of the Multipurpose Cargo Berth (including dredging works alongside the berth, turning circles and approach channel). The concessioning authority (Deendayal Port Authority) will bear an expense of Rs 531.42 crore towards capital dredging of the common user access channels and construction of the common user road.
On commissioning of the project, it will cater to the future growth in multipurpose cargo traffic.
The projected traffic gap by the year 2026 would be 2.85 MMTPA and by 2030 it would be 27.49 MMTPA, the release said.
The development of the berth would give the port a strategic advantage as it will be the closest container terminal serving the hinterland (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 by a private developer/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. The Concession Agreement will be for 30 years to handle designated cargoes. The Concessioning Authority shall be responsible for the common supporting infrastructure namely, the common Access Channel and common user road.
The project consists of the construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at a cost of Rs1,719.22 crore and handling capacity of 18.33 million tonnes per annum.
Initially, the project will cater to 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 the liberty to handle vessels up to 18m draught by deepening & widening in Berth Pockets and Turning Circle. 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 the increase of draft.
The Deendayal Port is one of the 12 major Ports, located on the West Coast in the Gulf of Kutch. It primarily services northern India, including the landlocked States of Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh and Rajasthan.