The NDA government Tuesday decided to set up a major port at Enayam near Colachel in Tamil Nadu. The Union Cabinet gave a go-ahead to the proposal worth an estimated cost of Rs 25,000 crore.
“Cabinet has given in-principle approval for setting up a major port at Enayam near Colachel in Tamil Nadu,” Communications and IT Minister Ravi Shankar Prasad said at a media briefing.
A special purpose vehicle (SPV) will be formed for development of this Port with initial equity investment from the three Major Ports in Tamil Nadu– V.O. Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port Limited. The SPV will develop the port infrastructure including dredging and reclamation, construction of breakwater, ensuring connectivity links, a government statement said.
At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies. Currently, all of India’s trans-shipment traffic gets handled in Colombo, Singapore and other international ports. Indian port industry loses out up to Rs 1,500 crore in revenues each year.
“Establishing this Major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country, but also become a trans —shipment hub for the global East-West trade route,” said a government official.