Government on Tuesday approved a proposal to build a major port at Enayam near Colachel in Tamil Nadu at an estimated cost of about 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 the development of the port, which will act as a major gateway container port for cargo, the government said.
“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 transshipment hub for the global east-west trade route,” an official told PTI.
The official said the overall cost of the project is about Rs 25,000 crore including phase 1 which will be implemented at a cost of Rs 6,575 crore.
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The official said private operators will invest about Rs 2,500 crore for the development of terminal berths, yard and equipment in the first phase.
The project has been pending for long.