Vadhvan Port: JNPA Sets Strict Criteria For Rs 20,647 Crore Dredging And Reclamation Works Tender

The Jawaharlal Nehru Port Authority (JNPA) has released stringent qualification criteria for entities vying for dredging, offshore reclamation, and shore protection contracts valued at Rs 20,647 crore for the proposed Vadhvan Port.

The move follows the BJP-led alliance's decisive electoral victory in Maharashtra, which is expected to accelerate infrastructure projects in the state.

Bidders must demonstrate technical capability worth at least Rs 15,113.60 crore, drawn from projects executed in the last decade. Eligible projects include Public-Private Partnership (PPP) experience or construction in port and core sectors such as ports, highways, airports, industrial parks, and real estate developments.

Additionally, a bidder must show a net worth of Rs 2,267.04 crore as of the preceding financial year. For consortiums, members must contribute at least 26 per cent equity and meet specific net worth thresholds, ensuring financial and operational stability throughout the project lifecycle.

Bidders must also possess a credit rating of A- or higher or submit a banker’s comfort letter guaranteeing project funding as per The Hindu report.

Approved by JNPA’s board on November 14, the Vadhvan Port project will use a Hybrid Annuity Model (HAM), marking its first application in Indian port development. The Rs 76,220 crore initiative will be executed in two phases:

The remaining 40 per cent of the contract value will be paid during a ten-year maintenance period following project completion. Maintenance dredging is excluded from this maintenance arrangement.

When complete, Vadhvan Port, developed under a joint venture between JNPA (74 per cent stake) and the Maharashtra Maritime Board (26 per cent stake), will handle up to 298 million tonnes of cargo annually, making it India’s largest public port.

The HAM approach, described as a “deferred EPC” model, reduces JNPA’s borrowing requirements and ensures phased financial disbursement, minimizing fiscal pressure on the authority.

The proposal has been forwarded to the Ministry of Ports, Shipping, and Waterways for submission to the Public Private Partnership Appraisal Committee for final approval, paving the way for bids from developers.