Bengal cabinet nod for issuing LoI to Adani group for deep sea port | The Financial Express

Bengal cabinet nod for issuing LoI to Adani group for deep sea port

West Bengal Maritime Board will issue the LoI to Adani, the highest bidder for the mega project.

Bengal cabinet nod for issuing LoI to Adani group for deep sea port
Only two bidders, Adani and JSW, had submitted financial bids.

The West Bengal cabinet on Monday approved issuing Letter of Intent (LoI) to Adani Ports and Special Economic Zone (APSEZ) for development of the greenfield Tajpur deep sea port. This paves way for the country’s largest private port operator to attract total investments worth Rs 25,000 crore centered round the port.

West Bengal Maritime Board will issue the LoI to Adani, the highest bidder for the mega project. The project may act as a game changer in the eastern region’s maritime sector. Only two bidders, Adani and JSW, had submitted financial bids. “The port would entail an investment of Rs 15,000 crore. The related port led infrastructure development would involve another Rs 10,000 crore investment. Overall, the project would involve an investment of Rs 25,000 crore. It would also create 25,000 jobs directly and more than one lakh jobs indirectly,”   Firhad Hakim, West Bengal’s transport minister, said after the cabinet  meeting.  

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“The port, about 170 km from Kolkata, will have a deep draft of 12.1 meters and a 18 km channel.  With a tidal support of 3.9 meters, the port will enjoy a peak draft of 16 meters, enabling large cape size vessels of one lakh dead weight tonne (DWT) to arrive directly to the port,” Hakim said.  

APSEZ turned out to be the highest bidder, offering a share of 0.25% of gross revenue. It was marginally higher than the second bidder, JSW Ports,  who offered 0.23%, a senior government official had earlier said.

The delay in awarding the project has been due to some legal issues, which were recently resolved, the official said.  APSEZ will get 125 acres of sea-front land for the development of the port, and another 1,000 acres, situated 4 km away, for port-linked industrial development.

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This deep sea port will usher in a new era of growth in the state, including in the hinterland areas. The greenfield port will provide quick access to the world markets to Bengal-based industries.  It will also be linked to the industrial & economic corridor from Dankuni to Raghunathpur, being developed by the state,  the minister said.

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