The Jawaharlal Nehru Port Authority (JNPA) has approved a significant Rs 20,647-crore proposal for the development of Vadhavan Port in Maharashtra. This ambitious project, structured under a public-private partnership (PPP) hybrid annuity model (HAM), will involve extensive dredging, offshore reclamation, and shore protection work.
Set to be executed in two phases, the project will span five years and require the reclamation of 1,200 hectares of land. The first phase, scheduled over three years, will focus on reclaiming 800 hectares, while the second phase, planned over the subsequent two years, will add another 400 hectares.
To enhance contractor cash flow and participation, the payment structure has been designed with a phased approach. Contractors will receive 60 percent of the contract value during the development period, ensuring financial stability and project momentum. The remaining 40 percent will be paid over a 10-year maintenance phase. Notably, maintenance dredging, which often raises cost concerns, has been excluded from the contract to attract more bidders.
The proposal is set for further review by the Ministry of Ports and the PPP Appraisal Committee, marking a critical step toward boosting infrastructure and trade capabilities in the region.
