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 Transport

02 May 2025

NHAI to Build 6-Lane Agra-Gwalior Expressway on BOT (Toll) Mode

To enhance connectivity between the tourism hubs of Agra and Gwalior, National Highways Authority of India (NHAI) will develop 88 km long 6-lane access controlled Agra-Gwalior Greenfield Expressway (NH-719D). NHAI, today signed a concession agreement for the implementation of project with GR Infraprojects, in presence of NHAI Chairman, Santosh Kumar Yadav and senior officials of NHAI and the Concessionaire. The Agra-Gwalior Greenfield Expressway will start from Deori village in Agra and terminate at Susera village in Gwalior. The project shall be developed at a Total Capital Cost of Rs 46.13 b..

Cabinet Nods 166.8-km NH-6 Greenfield Corridor on HAM Mode

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the proposal for Development, Maintenance and Management of 4-lane Greenfield Access Controlled 166.80 km of National Highway No. 06 from Mawlyngkhung (near Shillong) in Meghalaya to Panchgram (near Silchar) in Assam on Hybrid Annuity Mode as an access controlled greenfield High-Speed Corridor at a total capital cost of Rs 228.64 billion. The project length of 166.80 km lies in Meghalaya (144.80 km) and Assam (22.00 km). The proposed Greenfield high-speed corridor will improve the service level ..

Commercial Ops Begin at Multi-Modal Logistics Park in Nagpur

Under the PM Gati Shakti initiative of Prime Minister with the aim to provide seamless and efficient connectivity for the movement of people, goods and services across various modes of transport, thereby enhancing last-mile connectivity and reducing travel time, and under the guidance of Union Minister of Road Transport and Highways, Nitin Gadkari, the Multi Modal Logistics Park, Nagpur (MMLP Nagpur) at Sindi, near Wardha commenced its commercial operations with a goal to establish a faster link. The MMLP Nagpur established by National Highway Logistics Management (NHLML), a 100 per cent own..