Mumbai Infrastructure Development: JNPA Welcomes Japan International Cooperation Agency’s 'Keen Interest' In Funding ₹76,200 Crore Vadhavan Port Project

Mumbai Infrastructure Development: JNPA Welcomes Japan International Cooperation Agency’s 'Keen Interest' In Funding ₹76,200 Crore Vadhavan Port Project

While the Port authorities stated that JICA’s curiosity increased due to meticulous planning, comprehensive clearances, and robust financial projections of the proposed port spanning three decades, they added that JICA is working on the proposal to fund the new port.

Bhalchandra ChorghadeUpdated: Thursday, May 09, 2024, 04:49 PM IST
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Mumbai: The Jawaharlal Nehru Port Authority (JNPA) has welcomed the Japan International Cooperation Agency’s (JICA) keen interest in funding Rs 76,200 Crore Vadhavan Port. While the Port authorities stated that JICA’s curiosity increased due to meticulous planning, comprehensive clearances, and robust financial projections of the proposed port spanning three decades, they added that JICA is working on the proposal to fund the new port.

“JICA authorities have shown interest in funding the mega port at Vadhavan and we welcome that. We had initial discussions last month and they (JICA) said they will work on a proposal. We will be able to comment further only after receiving the proposal,” JNPA Chairman Unmesh Sharad Wagh said.

This marks the second major institution to express interest in backing the project, according to reports since the state-owned Power Finance Corporation Ltd (PFC) had offered to endorse the debt amounting to Rs 27,283 Crore for the construction of the mega port in Dahanu tehsil of Palghar district.

The port is a joint venture between JNPA and Maharashtra Maritime Board (MMB) with a ratio of 76:24. While JNPA will invest Rs 40,000 Crore, the remaining cost will be borne by MMB. “We already have the amount in the bank that we need to invest. So, that is not an issue. As far as loans are concerned, people are more than ready to give. JNPA does not have any debt and has a steady cash flow for the next 30 years. So, money is not a problem,” Wagh said while speaking to FPJ earlier.

“The new port will have a total of nine container terminals of 1 km each. There will also be four multipurpose terminals, four liquid terminals, one RoRo terminal and one terminal that will be given to the Coast Guard. All of these will be private terminals and JNPA will be doing all the basic setup before offering them on a public private partnership (PPP) module on royalty per container module,” Wagh said.

Key infrastructure, including breakwater, dredging, rail and road linkages, power supply, and water supply lines, will be developed. Various government bodies, including the Ministry of Railways and the Ministry of Road Transport and Highways will make external connectivity investments totalling Rs 5,002 crores.

The Union Cabinet, chaired by Prime Minister Narendra Modi, in February 2020, had approved setting up Vadhavan Port under the Sagarmala Programme. Situated in the environmentally-sensitive area, Vadhavan Port boasts a natural draft of approximately 20 metres near the shore.

This feature makes it well-suited for accommodating larger container vessels ranging from 16,000 to 25,000 twenty-foot equivalent units (TEUs), offering the benefits of economies of scale and contributing to the reduction of logistics costs. The construction of the greenfield port at Vadhavan is crucial for managing overflow traffic due to limitations on expansion at Nhava Sheva, where JNPT is situated.

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