Setting up of new major ports in the states of West Bengal and Andhra Pradesh

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal of the Ministry of Shipping for:

(i) setting up a new major port at Sagar Island in West Bengal through the Public Private Partnership (PPP) mode by following the extant procedures for project appraisal/approval, including obtaining environmental clearances, etc.

(ii) appointing the transaction advisers and legal consultants and initiate the bidding process for award of the project and to finalize the project structure in consultation with the State Government of West Bengal and the Planning Commission,

(iii) commissioning the techno-economic feasibility reports for the new major port at Dugarajapatnam locations, and

(iv) constituting of an Empowered Committee of Secretaries (ECS), to be chaired by Secretary (Shipping) and comprising Secretary, Department of Economic Affairs, Secretary, Planning Commission, Chairman, Railway Board, Secretary, Road Transport and Highways and Secretary, Department of Legal Affairs, to take appropriate decisions in regard to the project structuring, as well as other implementation related issues.

The benefits of setting up the major ports are as follows:

Sagar port in West Bengal: The existing port facilities at Kolkata and Haldia are riverine ports and are facing severe draught limitations, because of the adverse morphological changes in Hooghly River which results in regular siltation. The present proposal is to provide a deep draught port at Sagar Island which would obviate the need for heavy maintenance dredging and would be able to handle large sized vessels.

Major port in Andhra Pradesh: Rapid industrial growth in the hinterland of Visakhapatnam Port has rendered it necessary to have another major port in Andhra Pradesh. The new major port will facilitate the economic development of Andhra Pradesh and the surrounding areas.