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Vadhavan Port, Union Cabinet Approved in Maharashtra

In a significant move aimed at bolstering infrastructure and renewable energy sectors, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved two key projects: the Vadhavan Port project in Maharashtra and a viability gap funding (VGF) scheme for offshore wind energy projects.

Vadhavan Port Project

 Vadhavan Port Details
Location Maharashtra, near Vadhavan
Total Cost Rs 76,220 crore
Purpose Gateway port for India-Middle East-Europe Corridor (IMEC) and International North-South Transportation Corridor (INSTC)
Ownership Vadhavan Port Project Limited (VPPL), JV between JNPA (74%) and MMB (26%)
Type Greenfield deep draft major port
Infrastructure Terminals, core infrastructure, commercial facilities under PPP model
Connectivity Road and rail projects linking to national highways and Dedicated Rail Freight Corridor
Environmental Impact Measures to mitigate environmental concerns and address local community issues
Economic Impact Significant employment generation, boost to regional and national economy
  • Location: The Vadhavan Port project, located in Maharashtra, has received approval after extensive deliberations.
  • Cost: The project is estimated at Rs 76,220 crore, making it one of the largest port projects in India.
  • Purpose: It will serve as a crucial gateway port for the India-Middle East-Europe Corridor (IMEC) and the International North-South Transportation Corridor (INSTC).
  • Development: The port will be developed as an all-weather, greenfield deep draft major port.
  • Ownership: Vadhavan Port Project Limited (VPPL), a special purpose vehicle, will oversee the construction, with 74% and 26% stakes held by Jawaharlal Nehru Port Authority (JNPA) and Maharashtra Maritime Board (MMB), respectively.
  • Infrastructure Development: The project includes core infrastructure, terminals, and other commercial facilities under a public-private partnership (PPP) model.
  • Connectivity: The Cabinet has also approved road and rail connectivity projects to link the port with national highways and the Dedicated Rail Freight Corridor, enhancing its accessibility and operational efficiency.
  • Economic Impact: It is expected to boost economic growth significantly and generate substantial employment opportunities.

Vadhavan Port Project : Offshore Wind Energy Projects

Viability Gap Funding (VGF) Scheme 

  • Amount: The Cabinet approved a VGF scheme totaling Rs 7,453 crore for offshore wind energy projects.
  • Objective: This initiative aims to kickstart the development of India’s first set of offshore wind power projects.
  • Details:
    • Rs 6,853 crore will support the installation and commissioning of 1 gigawatt (GW) of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu).
    • Rs 600 crore is allocated for upgrading two ports to meet logistics requirements for offshore wind energy projects.
  • Implementation: Private developers will be selected through a transparent bidding process to establish these projects, while Power Grid Corporation of India Ltd will construct the necessary power evacuation infrastructure, including offshore substations.

Impact Of Vadhavan Port Project

  • Cost Reduction: VGF support aims to make offshore wind power economically viable for purchase by power distribution utilities, thereby reducing the overall cost of renewable energy.
  • Environmental Sustainability: Offshore wind projects contribute to India’s renewable energy targets while leveraging coastal resources.
  • Infrastructure Development: The initiative will also enhance port infrastructure, facilitating future offshore wind energy expansions.

Vadhavan Port Project UPSC

These approvals underscore the government’s commitment to infrastructure development and renewable energy expansion. The Vadhavan Port project and the offshore wind energy initiative are poised to not only strengthen India’s logistics and energy sectors but also pave the way for sustainable economic growth and technological advancement in the years ahead. The emphasis on PPP models and strategic investments reflects a broader vision for inclusive and resilient national development.

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Vadhavan Port FAQs

Where is Wadhwan port?

The Proposed Port is located at Vadhvan point near Dahanu in the District of Palghar, Maharashtra.

What is the depth of Vadhavan Port?

Vadahavan port with 20-metre natural depth will have the capacity to handle 23.3 million TEU (twenty-foot equivalent unit), a measure of volume in units of twenty-foot-long containers. It will emerge as one of the 10 biggest ports in the world and will create up to 12 lakh jobs.

What is the 13th major port Vadhavan?

The Union Cabinet approved India's 13th Major Port at Vadhavan in Maharashtra worth Rs 76,220 crores.

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Greetings! I'm Piyush, a content writer at StudyIQ. I specialize in creating enlightening content focused on UPSC and State PSC exams. Let's embark on a journey of discovery, where we unravel the intricacies of these exams and transform aspirations into triumphant achievements together!

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