CCEA approved Proposal to set-up 2 Major Ports in Bengal and Andhra Pradesh

The Cabinet Committee on Economic Affairs (CCEA) on 9 May 2013 approved the proposal of the Ministry of Shipping for setting up of two major ports in the country. The two ports will be set up through a Public Private Partnership Mode in West Bengal and Andhra Pradesh each.

As per the proposal approved the port will be developed at Sagar Island in West Bengal after obtaining environmental clearances and following exact procedures for development of the project. The cabinet also agreed for appointment of the transaction advisers and legal consultants and finalization of the project structure in consultation with the State Government of West Bengal and the Planning Commission.

In case of Andhra Pradesh, the Cabinet identified Dugarajapatnam location for development of the port and looked forward to find out the techno-economic feasibility report for commissioning of the port.

Benefits of setting-up the two Ports

Sagar Port in West Bengal: At present Kolkata has facilities of two ports namely Kolkata Docks at Kolkata and Haldia Dock Complex at Haldia. Both these ports being reverine face limitations of draught due to the morphological changes (change in river platform) in Hooghly because of siltation. Development of Sagar Port will provide a deep draught port for handling the large size vessels by doing away the heavy maintenance dredging activity.

Port of Andhra Pradesh: It will facilitate the economic development of Andhra Pradesh as the rapid industrialization across Visakhapatnam Port has created a necessity of a new port in the state.