A new Major Port at Vadhavan

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  A new Major Port at Vadhavan

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Read more on - Polity | Economy | Schemes | S&T | Environment

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1. Context - Cabinet gave in-principle approval for setting up of the 13th major port of India near Dahanu in Maharashtra. Total cost of the project will be Rs. 65,545 crore.
2. Background - Currently, India has 12 major ports – Deendayal, Mumbai, Jawaharlal Nehru Port Trust (JNPT), Mormugao, New Mangalore, Cochin, Chennai, Kamarajar, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia).
3. The Vadhavan port will be developed on landlord model.
4. Landlord Model - Where infrastructure is leased to private firms or industries and chemical plants.
5. A special purpose vehicle (SPV) will be formed, with the government planning to hold 51 per cent stake in the project. Jawaharlal Nehru Port Trust (JNPT) to own at least 50% in Vadhavan Port.
6. Jawaharlal Nehru Port Trust (JNPT) is the largest in India. It is ranked 28th in the world and has a traffic of 5.1 million TEUs (Twenty-Foot Equivalent Units). Jawaharlal Nehru Port will be the 17th largest container port in the world after the completion of the fourth terminal with capacity addition of 10 million TEUs by 2023. 
7. India will join the top 10 container port countries in the world after the development of the Vadhavan port. It caters to the needs of Maharashtra, North Karnataka, Telangana and secondary enclaves of Gujarat, Madhya Pradesh, Rajasthan, NCR, Punjab, and Uttar Pradesh.
8. Development of Vadhvan port is part of the government’s plan to develop infrastructure projects with a cost of Rs. 100-lakh crore over the next five years.
9. Significance - JNPT and Mundra, the two largest container handling ports of the country (for mid-size container ships only), have drafts of 15 metres and 16 metres. Vadhavan port has a natural draft of about 20 metres close to the shore, making it possible for it to handle bigger vessels at the port. Development of Vadhavan port will enable call of container vessels of 16,000-25,000 TEUs capacity, giving advantages of economies of scale and reducing logistics cost.

Read more on - Polity | Economy | Schemes | S&T | Environment

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