The approval for the Rs 8.79 crore project was given by Goa Coastal Zone management Authority (GCZMA) during its meeting held earlier this year.
The terminal is expected to be completed by December 2016.
"The approval was granted under Coastal Regulation Zone notification 2011. The permission from the authority was required as the projects is in CRZ II area," said a senior GCZMA official.
MPT located at Vasco is the only major port in the coastal state. It has planned state of the art cruise terminal which will be used to cater to the luxury cruise ships that takes halt in the coastal state.