"Cabinet has given in-principle approval for setting up a major port at Enayam near Colachel in Tamil Nadu," Communications and IT Minister Ravi Shankar Prasad said at a media briefing.
A special purpose vehicle (SPV) will be formed for the development of port, which will act as a major gateway container port for cargo, the government said.
"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 transshipment hub for the global east-west trade route," an official told PTI.
The official said private operators will invest about Rs 2,500 crore for the development of terminal berths, yard and equipment in the first phase.
The project has been pending for long.