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Cabinet approves setting up a Major port at Enayam near Colachel in Tamil Nadu

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Capital Market
Last Updated : Jul 07 2016 | 12:02 AM IST
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its 'in-principle' approval for setting up a Major port at Enayam near Colachel in Tamil Nadu.

A Special Purpose Vehicle (SPV) will be formed for development of this Port with initial equity investment from the three Major Ports in Tamil Nadu i.e. V.O.Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port. The SPV will develop the port infrastructure including dredging and reclamation, construction of breakwater, ensuring connectivity links etc.

At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies. Currently, all of India's trans-shipment traffic gets handled in Colombo, Singapore and other international ports. Indian port industry loses out upto Rs 1,500 Crores of revenues each year.

Establishing this Major port at Enayam will not only act as a major gateway container port for Indian cargo that is presently trans-shipped outside the country, but also become a trans-shipment hub for the global East-West trade route.

Enayam will also reduce the logistics cost for exporters and importers in South India who currently depend on trans-shipment in Colombo or other ports thus incurring additional port handling charges.

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First Published: Jul 06 2016 | 11:01 AM IST

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