Challenges and Concerns Surrounding Vadhavan Mega Port Project Implementation

The proposed mega port at Vadhavan in Maharashtra’s Palghar district has faced challenges, including opposition from green groups, fishermen, and locals. The Prime Minister’s Office (PMO) has suggested the use of the Hybrid Annuity Model (HAM) for the project, causing concerns among those involved. The port, with a capacity of 298 million tonnes per annum, is being built by Vadhvan Port Project Ltd, a joint venture between the Jawaharlal Nehru Port Authority and Maharashtra Maritime Board.

The HAM model, widely used for highways, would require major restructuring of project parameters if approved. Under the model, the private operator would be selected based on the life cycle cost, with the NHAI providing construction support and making annuity payments. Port industry sources are skeptical about adapting the HAM model for port projects, citing challenges in cargo handling and fee collection.

The Vadhavan Port is designed to handle a large capacity of containers and bulk cargo, with multi-purpose berths and other facilities. The project cost involves investments from both government and private operators, with uncertainties surrounding how the HAM model would be implemented for the port terminals. Despite delays in obtaining Cabinet approval, the project aims to significantly enhance the port’s capabilities and infrastructure.

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