June 24, 2021 12:39:02 am
After a failed attempt to develop Nargol port in South Gujarat, the state government on Wednesday once again gave “in-principle” approval to construct the port through a global bidding process.
The port project in Valsad district is expected to attract Rs 3,800 crore of investment in the first phase, a statement from the government stated. The port is expected to handle solid, liquid and container cargo.
In August 2012, a consortium of Cargo Motors Pvt Ltd and Israel Ports Co. was selected to develop the Nargol port.
The consortium however failed to develop the port within the stipulated time frame, forcing the government to invite fresh bids. Nargol was chosen as a spot for building the port, after local fishermen and farmers agitated against possible land acquisition at the original site near village Maroli, which is about 10 kilometers away from Nargol.
The Gujarat government in the statement issued on Wednesday stated that by 2025, the Jawaharlal Nehru Port near Mumbai is expected to reach its optimal operational capacity and therefore a greenfield port in South Gujarat can help serve industries in Gujarat, Maharashtra and Madhya Pradesh.
The government will be offering a BOOT (Build, Own, Operate and Transfer) period of 50 years instead of the 30 years usually offered for greenfield port development. “This presents the potential port developer with an assurance for greater Return on Investment (RoI),” the release stated.
The new proposal from the government “also offers interested developers the flexibility to quote discounted waterfront royalty rate in addition to the prevailing system of quoting premium on the base rates,” the release added.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.