Videocon to set up Rs 1600 crore port

The Videocon group, which is into consumer electronics and oil and gas, is planning to foray into port development.

Videocon, which is developing two special economic zones (SEZs) in Pune and Aurangabad, has firmed up plans to develop a minor port in Alewadi in Thane for Rs 1,600 crore. Sources said Videocon was in talks with the Maharashtra government in this regard.

Videocon Industries Chairman and Managing Director Venugopal Dhoot said, "As of now, there are no such plans and we are not bidding for Alewadi port."

However, sources at the Maharashtra Maritime Board (MMB) confirmed that Videocon Industries was leading the race for Alewadi Port development.

Alewadi Port will not be a cakewalk for Videocon as there are other leading corporates participating in the race. The sources said engineering and construction major Larsen & Toubro (L&T) and Nikhil Gandhi-promoted Sea King Infrastructure (SKIL) were in the fray, apart from overseas investors.

The MMB will have a minority stake in the project, which needs heavy investment in deepening the shipping channel to accommodate big vessels.

"Videocon is facing stiff competition from L&T, which has huge exposure to the port development business. The Maharashtra government is likely to take a final decision on this shortly," a source added.

The proposed site of the port development is off the coast near Alewadi village, south of Ucheli creek, 70 km away from Mumbai.

The proposed port will be a multi-purpose facility, which will be handling bulk and liquid cargo with 5 to 6 berths.

Industry experts said a multi-purpose berth would supplement Videocon's SEZ initiatives. "The cargo generated in the SEZ can be evacuated through this proposed port by setting up a road and rail connectivity," they added.

Recently, Mukesh Ambani-controlled Reliance Industries had acquired a controlling stake from Amma Lines, which was developing Rewas port, around 10 nautical miles off Mumbai harbour. Reliance Industries is likely to position Rewas port as a gateway to the two SEZs developed by the group in Navi Mumbai.

According to the MMB, Alewadi port holds tremendous economic potential with Tarapur Industrial Estate comprising engineering, chemical, textiles, paints, drugs and pharmaceuticals industries.

Alewadi can be served as a good feeder port for containers to supplement Jawaharlal Nehru Port Trust (JNPT). "There is scope for passenger transportation services from Mumbai to Alewadi for meeting the growing needs of the commuters in Mumbai," they said. Consultant major Deloitte Touche Tohmatsu is advising MMB in this project.

Meanwhile, Rajeev Chandrasekhar-promoted Hindustan Infrastructure is likely to develop Vijaydurg Port in Sindhudurg, while Redi port would be developed by Earnest Shipping. Mumbai-based shipping major Chowgule Steampship has secured a contract from the MMB for developing Jaigad port for handling 4 million tonnes of cargo by constructing of four berths and a dry dock.

The MMB is the nodal agency, which takes care of the regulatory and developmental framework of the state's maritime activities.