New Delhi [India], October 21 (ANI): Deendayal Port Authority (DPA), Kandla, on Wednesday issued a Letter of Award (LoA) to Essar Ports Limited for the development of a multi-purpose cargo terminal at Tuna Tekra, Kandla, under a 30-year concession agreement.

The project will be implemented on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) model, aimed at strengthening India's maritime infrastructure and expanding cargo-handling capacity.

According to DPA, Essar Ports emerged as the highest bidder through a global competitive bidding process, offering a royalty of Rs 61 per tonne payable to the port authority.

The terminal, with an estimated project cost of Rs 2,276.06 crore, is designed to handle 18.33 million tonnes of cargo annually.

Of the total project cost, Rs 1,552.57 crore will be invested by the concessionaire, while DPA will contribute Rs 723.49 crore.

'The project is expected to augment DPA's multipurpose cargo-handling capacity and support the long-term growth of domestic and EXIM trade,' DPA said.

The new terminal will be developed on the eastern side of the mega container terminal being developed by DP World at Tuna Tekra, also under the PPP model.

The facility will comprise four berths, each measuring 300 metres, with a total berth length of 1,200 metres. It is planned to accommodate Cape-size vessels of up to 1,70,000 deadweight tonnage (DWT), with a draft capability of up to 18 metres.

Commercial operations are expected to begin by 2031.

DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road.

The project is expected to ease pressure on DPA's existing dry-cargo berths, which are currently operating at over 90 per cent occupancy, compared with the indicated ideal level of 70 per cent.

The use of larger vessels and modern cargo-handling systems is expected to improve operational efficiency, reduce freight and fuel costs, and support cargo movement.

The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy, with sustainable practices and green technologies incorporated into its planning, construction and operations.

The project is also expected to generate direct and indirect employment and support ancillary activities in logistics, warehousing and allied services across Kutch and Gujarat.

DPA said the development aligns with the government's focus on port-led economic growth and strengthening India's maritime infrastructure.

On the occasion, DPA Chairman Sushil Kumar Singh formally handed over the Letter of Award to V. Srinivasan, Operating Partner, Infrastructure Vertical, and Ashish Rajgarhia, Chief Executive Officer of Essar Ports, in the presence of senior officials from both organisations. (ANI)