Bengal Cabinet Approved Issuing LoI To Adani Group For Deep Sea Port

The approval by the West Bengal cabinet for issuing a Letter of Intent to Adani ports and Special Economic Zone (APSEZ), was for the development of the greenfield Tajpur deep-sea port. This allows the country's largest privately owned port operator to attract investments totaling Rs 25,000 crore around the port.

The LoI will be issued by the West Bengal Maritime Board to Adani, who is the highest bidder in the mega project. This project could be a major game changer for the maritime sector in eastern regions. Adani and JSW were the only two bidders who 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.

"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 stated.

APSEZ was the highest bidder and offered a share of 0.25% gross revenue. It was slightly higher than JSW Ports who offered 0.23% as a second bidder. This was according to a senior government official.

Officials explained that delays in the award of the project were caused by legal issues which were resolved recently. APSEZ will receive 125 acres of land along the coast for the development and development of the port. Another 1,000 acres are available for port-linked industrial development, located 4km away.