Vadhvan Port Development: Maharashtra Government Approves Rs 3,400 Crore For The Project

The Maharashtra government has approved a fund of Rs 3,400 crore for the Maharashtra Maritime Board (MMB) towards the development of the Vadhvan Port project in Dahanu taluka, Palghar district, Times of India reported.

The port will serve as a satellite port to the Jawaharlal Nehru Port Authority (JNPA).

The sanctioned amount represents the government contribution of 26 per cent of the total project cost, according to the officials cited in the report. The remaining 74 per cent of the cost will be borne by JNPA.

Officials cited in the ToI report said the project will be executed through a special purpose vehicle, Vadhvan Port Project Ltd, jointly formed by JNPA and MMB.

The government resolution (GR) for this funding has been issued.

Emphasising the strategic importance of the project, an official said that the development of the port sector is of utmost importance for achieving the economic and industrial development of the state.

"There is a need to create various port projects in the state with modern infrastructure for import and export through water transport," the official added.

"Vadhvan port will be the largest port in the country… and that is why, keeping in mind this need for the future, it has been decided to develop Vadhvan port in Dahanu taluka of Palghar district as a satellite port of the Jawaharlal Nehru Port Authority," the official said.

Funds will be disbursed in phases based on demand, and MMB’s CEO has been authorised to transfer the funds to Vadhvan Port Project Ltd.

MMB will return its share of the revenue received from Vadhvan Port Project Ltd to the state government in the same proportion as the funds.

In addition, MMB has been granted permission to raise a loan of Rs 7,094 crore, part of the Rs 27,283 crore funding requirement for the project. Officials credited Rane with facilitating the fund allocation and loan clearance.

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