State-owned Jawaharlal Nehru Port Trust will develop two new ports at Rewas and Vijaydurg in Maharashtra to expand capacity and pursue port-led industrialisation, Shipping Minister Nitin Gadkari has said.

JNPT has also submitted initial bids for buying the bankrupt private port at Dighi which is undergoing corporate insolvency resolution process (CIRP) at the National Company Law Tribunal (NCLT).

“JNPT is planning to purchase two ports. We are working on that. I feel we have to develop port-led industrial area near JNPT where there is a huge potential,” Gadkari said in Mumbai on Saturday.

Vadhawan project shelved

These are first indications that the Shipping Ministry has put off its earlier plan to build a new port at Vadhawan in Palghar district through a joint venture with the Maharashtra Maritime Board (MMB) due to political and environment pressures.

“We have now received the detailed project report for Vadhawan. But, at Vadhawan, there are some environment and political problems. We are now looking at two other ports — one at Rewas and the other at Vijaydurg. Rewas is already in problem with the Reliance Group and we have to find a way out with the cooperation of the State government. We are also looking at Dighi port,” Gadkari said.

Apart from environment and political opposition, there is a third reason that has started to exert pressure on the development of Vadhawan, lending an element of uncertainty to the project. The Gujarat government is lobbying the Centre to “go slow” on Vadhawan because of its adverse impact on the prospects of ports in India’s top maritime State.

Vadhawan is less than 15 km away from Gujarat border while Rewas and Dighi are free from these pressure points.

Reliance connect

Reliance Logistics & Ports Pvt Ltd, of the Mukesh Ambani-led Reliance Industries, holds a 55 per cent stake in Rewas Port Ltd, the company formed to develop and operate an all-weather deep draught (depth) port, which is located just 10 km away from JNPT. Rewas also has received the key environment and coastal regulation zone clearances.

The port contract was awarded in 2002 but the construction has been delayed inordinately. MMB tookover citing breach of contract by Reliance.

“JNPT was looking to buy Dighi port but unfortunately it was taken to NCLT,” a government official briefed on the plan said, adding that JNPT will now have to compete with others to buy Dighi, also located nearby in the same Raigad district.

The planned port at Vijaydurg will cater to the needs of the proposed 60-million tonnes oil refinery and petrochemicals complex of Indian Oil Corporation, HPCL, BPCL, Saudi Aramco and ADNOC as well as other cargo destined for Kolhapur and Southern Maharashtra.

Gadkari said that funds were not a problem for JNPT to invest in the two ports. “JNPT is making profits of about ₹1,400 crore every year. Funding is not a problem. JNPT does not need government funding,” he added.

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