Adani Ports and Special Economic Zone, Hindustan Infralog (DP World), Larsen & Toubro, Royal Boskalis, Van Oord Dredging and Marine Contractors, Jan De Nul Dredging, National Marine Dredging Company and International Seaport Dredging are among the 15 entities that have submitted Letters of Interest (EoI) for the development and maintenance of dredging, offshore reclamation and coastal protection works at the new Vadhavan Port. These works are to be executed under the Public Private Partnership (PPP) model, specifically the Hybrid Annuity Model (HAM).

Rail Vikas Nigam, Hyundai Engineering and Construction Co, Meka Infrastructure, and Vishwa Samudra Engineering have also expressed interest in the project, which is estimated to cost Rs 206.47 billion. The deadline for submissions ended on August 30.

This is the first time in India that dredging, offshore reclamation and coastal protection for a new port are being attempted under the PPP-HAM model. On August 30, Prime Minister Narendra Modi inaugurated the port, which will be the 13th port owned by the Union government once completed.

Vadhavan Port has to handle 298 million tonnes of cargo, including 23.2 million twenty-foot equivalent units (TEUs).

In early August, the Jawaharlal Nehru Port Authority (JNPA), which oversees the Rs 762.20 billion Vadhavan Port project, called for expressions of interest for the dredging, offshore reclamation and coastal protection works under the PPP-HAM model.

Officials clarified that the EoI is not a tender, but rather a preliminary step. Based on the feedback and suggestions from interested entities, JNPA will refine the terms of the PPP-HAM contract and seek approval from the Public-Private-Partnership Appraisal Committee (PPPAC) before formally inviting bids for this important infrastructure work.

The large number of leading companies showing interest is seen as an endorsement of the PPP-HAM model for carrying out the dredging and reclamation works, despite initial concerns over the payment structure, which will be spread over a 15-year concession period. This confidence is partly attributed to JNPA’s solid financial position, as it operates India’s second-busiest container gateway.