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According to a government statement, the proposed Single Point Mooring (SPM) and allied facilities for import of crude oil at the Kandla port received clearance from the Cabinet Committee on Infrastructure (CCI).

The Rs 621.53 crore project would increase its capacity by 12 million tonne per annum (mn tpa) to 104 mn tpa and it would be set up off Veera (outside Kandla creek) in Gulf of Kutch at Kandla Port .

The government set a concession period of 30 years for the project, which would be set up on a build, operate and transfer basis (BOT).

Kandla port is strategically placed to function as a gateway to Western and Northern India, particularly for import of crude oil.

The SPM may cater to several refineries in the North-Western India, the government said, adding that expansion of existing refineries in these regions are expected to create additional demand for SPM facilities for ports on the West Coast.

Kandla port proposes to capture this incremental demand, and this project has been conceived accordingly, it said.

The SPM project will enable the Kandla Port Trust to enhance its capacity by 12 mn tpa, taking the total cargo handling capacity of the port to 104 mn tpa and this will also augment the energy security of the country, the statement said.