MCZMA Recommends CRZ Clearance for Mega Vadhvan Port

The Maharashtra Coastal Zone Management Authority (MCZMA) has taken a significant step toward the realization of the mega port project at Vadhavan, near Dahanu in Maharashtra's Palghar district, by recommending coastal regulation zone (CRZ) clearance for the venture.

Unmesh Wagh, Deputy Chairman and Chairman in-charge of the Jawaharlal Nehru Port Authority (JNPA), overseeing the project, confirmed that the MCZMA endorsed CRZ clearance during a meeting held on February 6. The next phase involves the Expert Appraisal Committee under the Ministry of Environment, Forest and Climate Change considering the project for final approval, anticipated in the coming days.

Previously, on July 31, 2023, the Dahanu Taluka Environment Protection Authority (DTEPA) granted a no objection certificate to the J N Port Authority for the development of Vadhavan Port, subject to specific terms and conditions stipulated by the Ministry of Environment, Forest and Climate Change and its relevant authorities.

The Vadhavan Port Project Ltd, a joint venture between JNPA (holding a 74 percent stake) and the Maharashtra Maritime Board (with a 26 percent equity), is set to develop the port in two phases under the landlord model, as per government policy, with an estimated investment of Rs 76,220 crore.

The project will include core and common infrastructure, such as breakwater, dredging, reclamation, and rail and road linkages, to be developed by Vadhavan Port Project Ltd at a cost of Rs 43,622 crores. Additional investments from various entities, including the Ministry of Railways and the Ministry of Road Transport and Highways, will contribute to the project's external connectivity.

The remaining project cost of Rs 37,244 crore will be covered by private operators responsible for container terminals, multipurpose berths, coastal cargo berths, RO-RO, and liquid berths selected by VPPL.

To fund the project, JNPA has engaged IDBI Capital Markets and Securities Ltd as a transaction advisor. The financing structure involves a debt-equity ratio of 70:30, supported by corporate guarantees from JNPA and Maharashtra Maritime Board. The debt requirements, estimated at approximately Rs 27,283 crore, will be progressively arranged throughout the project's execution.

Vadhavan Port, slated to be the first major port developed in partnership with a state government and the first significant port built by the Union government in over two decades, plays a pivotal role in JNPA's expansion plans, addressing limitations on expansion at Nhava Sheva.

ET