Union Shipping Ministry and the Jawaharlal Nehru Port Trust (JNPT) are discussing the hurdles in implementing the Rs 800 crore container terminal project at the port.
Last year, Dubai Ports World (DP World) was awarded the contract for setting up the terminal which will have a capacity to load 800,000 containers a year. DP World agreed to share 28.09 percent of its annual revenue with the port for the project.
But DP World could not sign the concession agreement since then because of issues with the land allocated for the project.
Of the total land awarded to the firm for the project, over 15 of the 27 hectare is covered by mangroves and the state government rules do not allow deforestation of land.
The union shipping ministry is looking into the concerns of the port and a decision is expected soon. The ministry reportedly wants DP World to sign the agreement and proceed with the development of the project. If there’s any trouble, the ministry is reportedly ready to compensate the operator by providing land elsewhere.
The container terminal is crucial for the country’s largest container port as it will help in reducing congestion at the port which has been fast losing cargo to other private ports on the west coast due to congestion.
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