The Japan International Cooperation Agency (JICA) has shown a strong desire to fund the INR 76,200 crore Vadhavan Port, a move that the Jawaharlal Nehru Port Authority (JNPT) has applauded. The port authorities said that JICA's interest was piqued by the new port's careful planning, thorough approvals, and solid three-decade financial projections, but they also mentioned that JICA is now working on a proposal to finance the new port.
JNPA Chairman Umesh Sharad Wagh said that they are happy that JICA officials have expressed interest in helping to finance the massive port at Vadhavan. When they first spoke with them last month, JICA stated they would draft a proposal. They said they would be able to comment further only after receiving the proposal.
According to several media reports, since the state-owned Power Finance Corporation Ltd. (PFC) promised to support the debt totaling INR 27,283 crore for the development of the mega port in Dahanu tehsil of Palghar district, this becomes the second significant institution that has shown interest in funding the project.
With a ratio of 76:24, JNPA and the Maharashtra Maritime Board (MMB) jointly own the port. JNPA will contribute INR 40,000 crore, but MMB will cover the remaining expenses. Wagh said that the money they need to invest is already in the bank. Thus, it is not a problem. People are more than willing to lend money when it comes to loans. For the next thirty years, JNPA will have consistent cash flow and no debt. Therefore, money is not an issue.
There will be nine container terminals at the new port at a distance of one kilometre. In addition, four multipurpose terminals, four liquid terminals, one RoRo terminal, and one terminal designated for the Coast Guard will all be accessible. Before making them available on a public-private partnership (PPP) module with a royalty per container module, JNPA will handle all of the fundamental setups for each of these private terminals.
Important infrastructure such as water and electricity supply lines, breakwaters, dredging, rail and road connections, etc. will be constructed. A total of INR 5,002 crore would be invested in external connectivity by a number of government agencies, including the Ministry of Road Transport and Highways and the Ministry of Railways.
In February 2020, the Union Cabinet, led by Prime Minister Narendra Modi, gave its approval for the Vadhavan Port to be established as part of the Sagarmala Programme. Vadhavan Port, which is located in an environmentally sensitive location, has a natural draft of about 20 metres close to the shore.
Larger container vessels, ranging in size from 16,000 to 25,000 twenty-foot equivalent units (TEUs), can be accommodated with this feature, which offers the advantages of economies of scale and lowers logistical costs. Because of restrictions on expansion at JNPT's location in Nhava Sheva, the construction of a greenfield port at Vadhavan is essential for handling overflow traffic.
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