Indian Railways, NHAI boost funding for Vadhavan Mega Port Project
10 Oct 2023
2 Min Read
CW Team
The mega port planned by the Indian government at Vadhavan near Dahanu in Maharashtra?s Palghar district is set to receive financial support from the Indian Railways and the National Highways Authority of India (NHAI). These entities will provide separate funding for the last mile rail and road links, estimated to cost around Rs 50 billion. This move aims to alleviate the financial burden on the special purpose vehicle led by the Jawaharlal Nehru Port Authority, which is responsible for executing the Rs 762.2 billion project.
Additionally, the in-port rail yard, including essential equipment like eRTGs, RMGCs, and rail operations within the port, costing approximately Rs 30.71 billion, will be developed by a Railway public sector undertaking or offered to a private rail operator on a public-private partnership (PPP) basis.
This collaboration between the Ministry of Railways and NHAI provides a third source of funding for the port project, designed to propel India into the world?s top 10 container ports, with a capacity to handle over 24.5 million twenty-foot equivalent units (TEUs), a capacity not achievable by other Indian ports due to natural limitations.
Previously, Vadhavan Port Project (VPPL), a joint venture between the state-owned Jawaharlal Nehru Port Authority (74% stake) and Maharashtra Maritime Board (26% equity), was tasked with funding the rail and road connectivity to the port and the in-port rail yard.
Currently, the project is in the pre-project implementation stage, involving activities such as environmental clearance, detailed engineering, and fundraising. The proposal has been submitted to the Public Investment Board (PIB) for scrutiny by the Finance Ministry before it goes to the Union Cabinet for final clearance. The Union Cabinet had given in-principle approval for the project in January 2020.
Notably, the rail connectivity up to the port will be handled by Indian Railways, and the rail yard inside the port has been identified as a PPP project. This development not only reduces the financial burden on the port authority but also opens avenues for private investment, marking a significant step in modernising Indian ports.
Furthermore, changes in the port layout have reduced the Coastal Regulation Zone (CRZ) 1A requirements, enabling the project to progress smoothly. The Dahanu Taluka Environment Protection Authority (DTEPA) has issued a no objection certificate for the project. Additionally, efforts are being made to address the sensitive issue of fishermen?s compensation, ensuring that the project positively impacts the local community.
The mega port planned by the Indian government at Vadhavan near Dahanu in Maharashtra?s Palghar district is set to receive financial support from the Indian Railways and the National Highways Authority of India (NHAI). These entities will provide separate funding for the last mile rail and road links, estimated to cost around Rs 50 billion. This move aims to alleviate the financial burden on the special purpose vehicle led by the Jawaharlal Nehru Port Authority, which is responsible for executing the Rs 762.2 billion project.
Additionally, the in-port rail yard, including essential equipment like eRTGs, RMGCs, and rail operations within the port, costing approximately Rs 30.71 billion, will be developed by a Railway public sector undertaking or offered to a private rail operator on a public-private partnership (PPP) basis.
This collaboration between the Ministry of Railways and NHAI provides a third source of funding for the port project, designed to propel India into the world?s top 10 container ports, with a capacity to handle over 24.5 million twenty-foot equivalent units (TEUs), a capacity not achievable by other Indian ports due to natural limitations.
Previously, Vadhavan Port Project (VPPL), a joint venture between the state-owned Jawaharlal Nehru Port Authority (74% stake) and Maharashtra Maritime Board (26% equity), was tasked with funding the rail and road connectivity to the port and the in-port rail yard.
Currently, the project is in the pre-project implementation stage, involving activities such as environmental clearance, detailed engineering, and fundraising. The proposal has been submitted to the Public Investment Board (PIB) for scrutiny by the Finance Ministry before it goes to the Union Cabinet for final clearance. The Union Cabinet had given in-principle approval for the project in January 2020.
Notably, the rail connectivity up to the port will be handled by Indian Railways, and the rail yard inside the port has been identified as a PPP project. This development not only reduces the financial burden on the port authority but also opens avenues for private investment, marking a significant step in modernising Indian ports.
Furthermore, changes in the port layout have reduced the Coastal Regulation Zone (CRZ) 1A requirements, enabling the project to progress smoothly. The Dahanu Taluka Environment Protection Authority (DTEPA) has issued a no objection certificate for the project. Additionally, efforts are being made to address the sensitive issue of fishermen?s compensation, ensuring that the project positively impacts the local community.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..