Vadhavan Port’s Dredging and Land Reclamation on PPP Model

The land reclamation and dredging work for Vadhavan Port will be executed under PPP mode at a cost of Rs. 17,709 crore, with additional infrastructure works like coastal protection, breakwaters, and connectivity estimated at Rs. 38,976 crore. VPPL and the concessionaire will negotiate risk-sharing and financial support terms. This represents a shift from the initial plan, where the infrastructure work was supposed to be conducted through the EPC route funded by JNPA and MMB.

Private operators of container terminals, multipurpose berths, coastal cargo berths, RO-RO, and liquid berths selected by VPPL will bear the remaining project cost of Rs. 37,244 crore. The decision to carry out the land reclamation and dredging work under PPP mode aims to increase efficiency and bring in private sector expertise. The negotiations for risk-sharing and financial support between VPPL and the concessionaire are crucial for the successful implementation of the project.

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