After an unsuccessful attempt to develop the port of Nargol in southern Gujarat, the state government again gave its “in principle” approval on Wednesday to build the port in a competitive bidding process. global.
The port project in Valsad district is expected to attract 3,800 crore of investment in the first phase, a government statement said. 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 port of Nargol.
The consortium failed to develop the port on time, however, forcing the government to launch new bids. Nargol was chosen as the location for the construction of the port, after local fishermen and farmers agitated against a possible land acquisition at the original site near the village of Maroli, located about 10 kilometers from Nargol.
The government of Gujarat, in a statement released on Wednesday, said that by 2025, the port of Jawaharlal Nehru near Mumbai is expected to reach its optimum operational capacity and that a new port in southern Gujarat can therefore help serve the industries of Gujarat, Maharashtra and Madhya Pradesh.
The government will offer a BOOT (Build, Own, Operate and Transfer) period of 50 years instead of the 30 years usually offered for the development of a new port. “This gives the potential port developer the assurance of a better return on investment (RoI),” the statement said.
The government’s new proposal “also offers interested developers the opportunity to offer a reduced royalty rate on the waterfront in addition to the existing system of offering a premium over base rates,” the statement added.