The Union Cabinet on Wednesday approved a proposal to develop a container terminal at Tuna-Tekra, Deendayal Port, in Gujarat under the public private partnership mode.

The estimated cost of Rs 4,243.64 crore will be on the part of the Concessionaire while common user facilities of Rs 296.20 crore will be on the part of the concessioning authority.

Information and Broadcasting Minister Anurag Thakur said that during the concession period, the concessionaire will have the liberty to handle vessels up to 18 metre-draught by deepening/widening its approach channel, berth pocket and turning circle.

Deendayal Port is one of the 12 major ports in India and is located on the west coast in the Gulf of Kutch in Gujarat.

The project is proposed to be developed on BOT (Built Operate Transfer) basis by a private developer/ BOT operator to be selected through an international competitive bidding process.

The concessionaire will be responsible for the design, engineering, financing, procurement, implementation commissioning, operation, management and maintenance of the project.

According to an official statement, on commissioning of the project, it shall cater to the future growth in multipurpose cargo (other than container/liquid) traffic.

Noting that the projected traffic gap by the year 2026 would be 2.85 MMTPA and by 2030 it would be 27.49 MMTPA, it said development of multipurpose cargo berth Off Tune Tekra at Gulf of Kutch at Kandla will give it a strategic advantage as it will be the closest container terminal serving the vast hinterland of northern part of India.

In addition to increasing the business potential of Kandla, the statement said the project will boost the economy and generate employment.

The project consist of construction of an off-shore berthing structure for handling four vessels at a time with allied facilities at the cost of Rs 1,719.22 crore and handling capacity of 18.33 million tonnes per annum.