Adani Ports, JSW, PSA looking to bag Rs 7,000 crore Tuticorin project

The project aims to capitalise on the newfound investor interest in the region, spurred by mega investments such as the Rs 16,000 crore electric vehicle manufacturing unit by Vietnamese major VinFast, the Indian Space Research Organisation's second spaceport in Tamil Nadu's Kulasekarapattinam, and Singapore's Sembcorp's Rs 36,238 crore investment in renewable energy.

The envisioned project aims to elevate VOC Port into the inaugural transshipment hub on India's East Coast. The VOC Port Authority has already issued the request for qualification. This initiative involves viability gap funding (VGF) from the Government of India and is structured as a public-private partnership on a design-build-finance-operate-transfer basis.

Multiple big-ticket projects recently launched in Tuticorin and nearby districts include, other than VinFast, India's first International furniture park, Tata Power project, and Sembcorp project, among others.

Anticipated to reach 25 million TEU by 2025, the demand for the Indian container market is substantial…Presently, Jebel Ali (United Arab Emirates) handles 2 per cent, Port Klang (Malaysia) 3 per cent, Singapore 10 per cent, and Colombo (Sri Lanka) 60 per cent of Indian transshipment containers.

The winner will get a 45-year concession period with a revenue share holiday for the initial 10 years and a 15-year performance guarantee holiday.  Strategically positioned, the port also enjoys the advantages of being close to 16 container freight stations and over 2.5 million square feet of warehouse space within a 5 kilometre radius. The port has been designated as one of the three exclusive hubs for green hydrogen and offshore wind power in India.

The government is offering a VGF of up to Rs 1,950 crore for the project. Two berths, totalling 2,000 metres in quay length, will be developed in two distinct phases (1,000 metres each).