Gujarat chief minister Vijay Rupani has approved development of a greenfield port at Nargol in south Gujarat through the public-private-partnership with an extended build, own, operate and transfer (BOOT) period of 50 years.
As port projects have huge gestation lags, the Gujarat government is setting a precedent by keeping the initial BOOT period for Nargol port development at 50 years, rather than 30 years usually offered for greenfield port development in the state.
This presents the potential developer with an assurance for greater return on investment. The proposal also offers interested developers the flexibility to quote discounted waterfront royalty rate, in addition to the prevailing system of quoting premium on the base rates.
