IL&FS, L&T to develop greenfield ports

L&T receives letter of intent for Sutrapada, IL&FS for Khambhat.

The state government has finalised developers for two more greenfield port sites. The Gujarat Maritime Board (GMB), state's ports regulator, issued letter of intent (LoI) to L&T for Sutrapada and IL&FS for Khambhat. A total investment of over Rs 3,500 crore would be required to develop these ports.

L&T will build two bulk cargo handling berths and break waters during the phase I of the project, which will see investments worth Rs 670 crore. The total capacity of this port will be 5.6 million tonne.

Khambhat, which is a comparatively smaller port, would see investments of Rs 120 crore. It will have two coal-handling berths with a total capacity of 3.6 million tonne.

Both the companies will have to submit detailed project reports (DPRs) within 12 months and get all necessary clearances including environment clearance within 18 months.

The government has identified 10 greenfield port sites to give a boost to the cargo handling capacity of Gujarat, which is eyeing to become the gateway to the northern hinterland.

It has planned to create additional facilities to handle 220 million tonne cargo by 2012. A number of companies have shown interest in the greenfield port development project.

As many as 12 companies have emerged as successful bidders for eight other greenfield sites identified to be developed as ports.