The Rs 20,647 crore EOI aims to select an entity to handle land reclamation for the port and the construction of an offshore protection bund.

The project will involve dredging the approach channel and harbour basin, as well as reclaiming 1,227 hectares of offshore area. Approximately 200 million cubic meters of reclamation material will be required for the port.

The land reclamation and construction of an offshore protection bund are proposed to be implemented under the public-private partnership (PPP) mode under the Hybrid Annuity Model (HAM). Under this model, the applicant will finance, execute, maintain, and transfer the facility to JNPA after the concession period.

The payment structure involves an initial 40 per cent paid as a fixed amount in five equal instalments. The remaining 60 per cent is paid as a variable annuity after project completion, based on the value of assets created, according to the EoI.

Earlier on 19 June, the Union Cabinet, chaired by Prime Minister Narendra Modi, cleared the development of the Vadhvan Port project, an all-weather greenfield deep draft major port, about 150 km north of Mumbai.

The port, estimated to cost Rs 76,220 crore, will be developed by Vadhavan Port Project Limited (VPPL), a Special Purpose Vehicle (SPV) formed by the Jawaharlal Nehru Port Authority and the Maharashtra Maritime Board (MMB), with an equity share of 74 per cent and 26 per cent respectively.

The port will follow a landlord model, where the SPV will develop basic infrastructure such as breakwaters, rail and road connectivity, power, water lines, and common services.

Dredging, reclamation, and shore protection bund construction will be developed under PPP models, while cargo and container terminals will be managed by agencies awarded concessions for the same.

The development of the port facilities at Vadhvan will be executed in phases to align with traffic demands. In Phase 1, the port is expected to handle approximately 6.85 million Twenty-foot Equivalent Units (TEUs) by 2030. This capacity will expand to 23.2 million TEUs by the completion of Phase 2 in 2040. The TEU is a unit of cargo capacity for ports and shipping.

The new capacities will boost EXIM trade flow through key corridors such as the India-Middle East-Europe Economic Corridor (IMEEC) and the International North-South Transportation Corridor (INSTC).

This project is expected to stimulate economic activity and generate direct and indirect employment opportunities for approximately 1.2 million people, significantly benefiting the local economy.