Mumbai, Nov 8: Meeting a long-standing demand of the Mumbai Port, the Cabinet Committee on Economic Affairs (CCEA) today approved setting up of an offshore container terminal (OCT) there at an estimated cost of Rs 1228 crore, which would enable the port to handle large-sized container vessels and add to its capacity by 9.6 million tonnes per annum.
For executing the project on Build, Operate and Transfer (BOT) basis, Mumbai Port Trust (MbPT) would enter into a Licence Agreement with a consortium of three companies -- Gammon India Ltd, Gammon Infrastructure Limited and Dragados SPL, Spain.
Briefing reporters on the CCEA meeting, Finance Minister P Chidambaram said the project would be completed in 36 months while funding would be fully through internal accruals.
Mr Chidambaram said while the consortium would execute the project, MbPT would provide infrastructural support like capital dredging and navigational aids, filling of Prince's and Victoria docks and laying of tracks for a rail container depot.
In addition, the port would also carry out an environment management plan and undertake miscellaneous works.
Mr Chidambaram said the total cost of the OCT project was pegged at Rs 1228 crore, of which the consortium operator would account for Rs 862 crore. The investment by MbPT to carry out works under its scope will be Rs 366.39 crore.
''The container terminal will enable the port to handle large-size container vessels and thereby save precious foreign exchange,'' he said, listing out the benefits of the project.
It will facilitate the Mumbai Port to bridge the capacity gap in the Mumbai region along with Jawaharlal Nehru Port Trust (JNPT) and facilitate augmented growth in trade, employment generation, incremental regional economic development, in addition to spin-off economic benefits.
More importantly, he said it would provide a cost-effective and efficient gateway for imports and exports for industries in the Special Economic Zone and the opening of the retail sector.