Concerns mount over VOC port project cost estimates

26 Mar 2024 CW Team

Potential bidders express concerns regarding VOC Port's outer harbour box terminal project cost estimates. The estimated investment is Rs 70,559.5 million for a four million twenty-foot equivalent units (TEUs) capacity container terminal. Bidders call for re-evaluating the project's cost, which they deem to be at least 50% lower than realistic estimates.

The National Technology Centre for Ports, Waterways and Coasts (NTCPWC) prepared the Detailed Project Report (DPR) for the project, estimating Rs 6,984.5 million for breakwater construction and Rs 12,335.1 million for dredging in the basin and outer harbour channel for the first phase. Concerns arise regarding the accuracy of these estimates.

Port expert Devdatta Bose highlights discrepancies in the estimated costs, particularly for breakwater construction and dredging. He suggests a higher cost analysis, indicating potential underestimation by NTCPWC.

The port authority defends the estimates, citing the methodology used and the proximity of material sources for construction. They maintain that the estimates were submitted for approval in January 2023.

Potential bidders propose revisiting cost estimates or increasing viability gap funding (VGF) to 50% to ensure project viability. However, the port authority stands by its estimates, expressing confidence in the methodology used.

Secretary TK Ramachandran assures flexibility in revisiting project terms if necessary. He encourages potential developers to approach the project with a positive mindset, emphasizing its viability and market-driven tariffs.

Suggestions are made to enhance the project's attractiveness, including allocating land for a free trade zone. These suggestions are acknowledged for further consideration.

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..