Mumbai's upcoming Rs 76.2-crore Vadhvan port in Maharashtra, which received approval from the Union Cabinet on Wednesday, has the potential to boost the state's economy by 1 per cent once completed, a senior official said .
Vadhvan Port Project Ltd (VPPL), to be developed in two phases by Vadhvan Port Project Ltd (VPPL), the major greenfield, deep draft all-weather port at Vadhvan in Palghar district will comprise nine container terminals, each 1,000 meters long, four multipurpose berths, including the coastal berth, four liquid cargo berths, one Ro-Ro berth and one coast guard berth.
VPPL is a special purpose vehicle (SPV) formed by the Jawaharlal Nehru Ports Authority (JNPA) and the Maharashtra Maritime Board (MMB) with a stake of 74 per cent and 26 per cent, respectively.
"Once this (project) is completed, it will increase the GDP of Maharashtra by 1 per cent. It has that potential," JNPA president Unmesh Sharad Wagh said at a press conference here.
Wagh said the upcoming port will also be the starting point for the International North-South Transport Corridor (INSTC), which is a multi-modal transport route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and towards northern Europe. through St. Petersburg in Russia, as well as for the India-Middle East-Europe Economic Corridor (IMEEC).
He also said that the strategic location of Vadhvan port will facilitate the scale of container traffic.
"The port will link the international and Indian coasts, accelerating economies of scale and mitigating logistics costs. Additionally, the port will also address the EXIM needs of industries in Vapi, Indore, Karnataka and Maharashtra," he said.
Stating that work on the project is expected to begin after monsoon next year, Wagh said the first phase of the port will be completed in 2029.
According to Wagh, the Vadhvan port, which will be built on the "Land Lord model", will not require any land as the developers will create a 1,448 hectare land within the sea (land reclaimed from the sea), in addition to the construction of 10 .14 kilometers of breakwater container. /cargo storage areas.
He said the investment proposal approved by the Union Cabinet amounts to Rs 76.22 billion and added that the central government will not give any financial assistance for this project and "it will be borne by the Maharashtra government and the JNPA."
"We have to come up with around Rs 13,000 crore. We already have that money in our bank," Wagh said, adding that two public sector financial institutions are interested in financing the project.
Foreign financial institutions have also shown interest in financing the project, he said.
The project cost of Rs 76,220 crore includes core infrastructure, terminals and other commercial infrastructure in PPP mode.
The cabinet also approved establishment of road connectivity between the port and national highways by the MoRTH and rail linkage with the existing rail network and upcoming dedicated freight rail corridor by the MoR.
The proposed major deep draft all-weather port at Vadhvan will increase domestic container handling capacity by 23.2 million TEU and facilitate the calling of large container ships capable of carrying 24,000 TEU, according to the JNPA.
With the development of Vadhvan port, which will contribute to greater economic activity and also have potential for direct and indirect employment opportunities for more than 10,000,000 people directly and indirectly, India will be one of the top 10 container ports in the world , said. .
Maharashtra's gross state domestic product (GSDP) is expected to grow by 10 per cent in FY25, Finance Minister Ajit Pawar told the Legislative Assembly in March this year.
The GSDP, which was Rs 38.79 lakh crore in 2023-2024, was expected to expand by 10 per cent to reach Rs 42.67 lakh crore in 2024-25, Pawar, who is also Deputy Chief Minister, said in his response to a debate on the interim budget for 2024-25.
Vadhvan Port Project Ltd (VPPL), to be developed in two phases by Vadhvan Port Project Ltd (VPPL), the major greenfield, deep draft all-weather port at Vadhvan in Palghar district will comprise nine container terminals, each 1,000 meters long, four multipurpose berths, including the coastal berth, four liquid cargo berths, one Ro-Ro berth and one coast guard berth.
VPPL is a special purpose vehicle (SPV) formed by the Jawaharlal Nehru Ports Authority (JNPA) and the Maharashtra Maritime Board (MMB) with a stake of 74 per cent and 26 per cent, respectively.
"Once this (project) is completed, it will increase the GDP of Maharashtra by 1 per cent. It has that potential," JNPA president Unmesh Sharad Wagh said at a press conference here.
Wagh said the upcoming port will also be the starting point for the International North-South Transport Corridor (INSTC), which is a multi-modal transport route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and towards northern Europe. through St. Petersburg in Russia, as well as for the India-Middle East-Europe Economic Corridor (IMEEC).
He also said that the strategic location of Vadhvan port will facilitate the scale of container traffic.
"The port will link the international and Indian coasts, accelerating economies of scale and mitigating logistics costs. Additionally, the port will also address the EXIM needs of industries in Vapi, Indore, Karnataka and Maharashtra," he said.
Stating that work on the project is expected to begin after monsoon next year, Wagh said the first phase of the port will be completed in 2029.
According to Wagh, the Vadhvan port, which will be built on the "Land Lord model", will not require any land as the developers will create a 1,448 hectare land within the sea (land reclaimed from the sea), in addition to the construction of 10 .14 kilometers of breakwater container. /cargo storage areas.
He said the investment proposal approved by the Union Cabinet amounts to Rs 76.22 billion and added that the central government will not give any financial assistance for this project and "it will be borne by the Maharashtra government and the JNPA."
"We have to come up with around Rs 13,000 crore. We already have that money in our bank," Wagh said, adding that two public sector financial institutions are interested in financing the project.
Foreign financial institutions have also shown interest in financing the project, he said.
The project cost of Rs 76,220 crore includes core infrastructure, terminals and other commercial infrastructure in PPP mode.
The cabinet also approved establishment of road connectivity between the port and national highways by the MoRTH and rail linkage with the existing rail network and upcoming dedicated freight rail corridor by the MoR.
The proposed major deep draft all-weather port at Vadhvan will increase domestic container handling capacity by 23.2 million TEU and facilitate the calling of large container ships capable of carrying 24,000 TEU, according to the JNPA.
With the development of Vadhvan port, which will contribute to greater economic activity and also have potential for direct and indirect employment opportunities for more than 10,000,000 people directly and indirectly, India will be one of the top 10 container ports in the world , said. .
Maharashtra's gross state domestic product (GSDP) is expected to grow by 10 per cent in FY25, Finance Minister Ajit Pawar told the Legislative Assembly in March this year.
The GSDP, which was Rs 38.79 lakh crore in 2023-2024, was expected to expand by 10 per cent to reach Rs 42.67 lakh crore in 2024-25, Pawar, who is also Deputy Chief Minister, said in his response to a debate on the interim budget for 2024-25.
