Centre looks to hit throttle on Rs 76,000 crore Vadhavan Port project

Inter-ministerial consultations on, proposal may get go-ahead soon

The Union ministry of ports, shipping and waterways is working to expedite planning, consultations and approvals for its ambitious Vadhavan Port project in Palghar, Maharashtra, after it had been stuck over environmental concerns for over two years.

A detailed project report (DPR) has been prepared for the public-private partnership (PPP) project, which pegs its cost at about Rs 76,000 crore.

This is a Rs 11,000-crore increase from 2020 when the project had first received an in-principle approval from the Union Cabinet.

According to officials, the Centre will seek an investment of close to Rs 38,000 crore from private operators interested in operating the proposed deep-draft port.

“The ministry is working on inter-ministerial consultations for the project right now. There is an expectation that these will be expedited and all inputs will be received and resolved soon,” said government officials in the know.

The project is also an important matter of discussion in PM Gati-Shakti National Master Plan meetings. And, work is being done to inculcate inputs and plan allied infrastructure accordingly.

Experts and officials said that the port is slated to be one of the biggest beneficiaries of the proposed India-Middle East-Europe Economic Corridor (IMEC) announced during the G20 Summit.

This is because it will cater to larger vessels and more cargo.

Based on comprehensive infrastructure connectivity needs and demand-supply forecasts for industries in the area, several allied infrastructure projects, such as direct connectivity with NH-48, connectivity with the Western Dedicated Freight Corridor, pipelines and water reservoirs, have been planned in consonance with the development of the port, officials said.

In addition, social sector project proposals are being developed simultaneously, such as training needs in tourism and fishing. They also include development of heritage sites, health centres, malnutrition control centres, infrastructure for sports facilities and supply of sports & cultural equipment, among others.

Some of these initiatives will be planned to allay concerns of local communities, which have been protesting against the clearance granted by the Dahanu Taluka Environmental Protection Authority (DTEPA) in August. DTEPA underwent a change in chairmanship in 2022, citing potential for major environmental damage and loss of livelihood for local communities.

The Jawaharlal Nehru Port Authority (JNPA) had also decided to shift the location of the port marginally to allay concerns of the protestors.

Meanwhile, consultations are also being undertaken to ensure adequate and fair compensation for locals in the area.

The Vadhavan Port has a natural draft (depth) of about 20 metres close to the shore, making it possible for it to handle bigger vessels.

Development of Vadhavan Port will enable the movement of container vessels of 16,000-25,000 twenty-foot equivalent units (TEUs) capacity. The port will provide economies of scale and reduce logistics cost, according to the Centre.