Three years after a formal agreement was signed for setting up world’s first CNG terminal in Gujarat, Prime Minister Narendra Modi will lay the foundation stone for the project at Bhavnagar on September 29, stated an official release, Saturday.
The Foresight Group had signed a Memorandum of Understanding (MoU) with the Gujarat Maritime Board (GMB) for the development of a CNG terminal in Gujarat during the Vibrant Gujarat Global Business Summit 2019. In December 2019, the Consortium submitted a project proposal to GMB for the development of CNG Terminal and other terminals at the north-side of Bhavnagar Port.
The Government of Gujarat accepted the project proposal and GMB issued a Letter of Intent (LOI) in September 2020 in the name of Bhavnagar Port Infrastructure Private Limited (BPIPL), a special purpose vehicle formed by the consortium.
The brownfield port at Bhavnagar will be developed at a cost of Rs 4,024 crore and will have state-of-the-art infrastructure for the world’s first CNG terminal along with the world’s fourth largest lock gate system.
In addition to the CNG terminal, the port will also cater to the future needs and demands of Bhavnagar district for upcoming projects such as vehicle scrapping, container manufacturing, and Dholera Special Investment Region in particular. The port will also have ultra-modern container terminal, multipurpose terminal, and liquid terminal with direct door-step connectivity to the existing roadway and railway network connecting to the largest industrial zones, dedicated freight corridor and northern hinterland of the country.
The proposed port will also result in several economic benefits and cost savings with more cargo volume handling at lesser inland distance travel. The port will help generate direct and indirect employment for up to 1,100 people and will also increase the ancillary port related services opportunities.
Moreover, the CNG Import Terminal will provide an additional alternate source of energy to meet the growing demands of clean energy. The promoters have already signed an agreement for the supply of CNG and development of CNG Export Terminal with RAK Gas, Ras Al Khaimah, UAE. The supply mechanism of CNG, once operational, will be revolutionary, enabling India to tap small scale and stranded gas volumes that are yet to be utilised.
The construction of the port is expected to commence in the first half of 2023 and the port will be operational in 2026.
On same day, Prime Minister will also inaugurate the Regional Science Centre in Bhavnagar that is spread in 20 acres and built at a cost of Rs 100 crore. The Regional Science Centre (RSC) Bhavnagar is situated near Das Nala, Nari Gam.
The Prime Minister will also inaugurate the APPL Container manufacturing unit (AAWADKRUPA PLASTOMECH PVT. LTD). After the announcement of Prime Minister’s ‘Make In India’, the Government of India had established a Container’s Manufacturing Hub at Bhavnagar. The first prototype container was manufactured in 2019.