VOC Port’s move to the HAM model de-risks the ₹9,859cr project, luring bidders by sharing the financial burden.
VOC Port Authority has re-tendered the ₹9,859.45 crore outer harbour project, marking a strategic shift to a Hybrid Annuity Model (HAM). This decision follows two unsuccessful bidding rounds under the previous viability gap funding (VGF) framework, which failed to attract private investors.
The project is central to the port’s ambition to become a premier transhipment hub, with the following expanded details:
- Infrastructure: The contract includes the construction of a 5.6km breakwater, a 3.2km rock bund, and a 1,000m quay for the first container terminal.
- Dredging and Capacity: Extensive capital dredging will deepen the basin to handle ultra-large container vessels with drafts up to 18 metres. The completed harbour will have a total capacity of 4 million TEUs per annum.
- Strategic HAM model: By adopting the HAM model previously used for the Vadhvan Port, the government will bear a larger share of the upfront cost, significantly reducing the financial risk for private developers.
The tender was officially re-floated on 26 December 2025, with a bid submission deadline of 9 February 2026.
Prime Minister Narendra Modi laid the foundation stone on 28 February 2024. The project is a key component of the “Gati Shakti” initiative and “Maritime India Vision 2030,” aiming to reduce India’s reliance on foreign transhipment hubs like Colombo and Singapore.
The project cost was revised upwards from ₹7,056 crore to nearly ₹9,860 crore to reflect more realistic estimates for dredging and material costs, addressing previous concerns from industry bidders regarding “unrealistic” valuations.
SOURCE – THE HINDU
