Deendayal Port Authority issues LoA to Essar Ports Ltd. to develop Multi-Purpose Cargo Terminal at Tuna Tekra

Deendayal Port Authority in Gujarat’s Kandla has issued the Letter of Award (LoA) to Essar Ports Ltd. on Wednesday to develop the Multi-Purpose Cargo Terminal at the Tuna Tekra port, in Kandla.

The project will be implemented on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) mode for a concession period of 30 years, bolstering India's maritime infrastructure.

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Sushil Kumar Singh, Chairman, DPA, formally handed over the Letter of Award to V. Srinivasan, Operating Partner-Infrastructure Vertical, and Ashish Rajgarhia, Chief Executive Officer, Essar Ports, in the presence of senior officials of Deendayal Port Authority and Essar Ports Limited.

The private port operator emerged as the highest bidder through a global competitive bidding process, offering a royalty of 61 per tonne payable to DPA.

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The terminal will be developed on the eastern side of the Mega Container Terminal of DPA, being developed by DP World under PPP Mode at Tuna Tekra.

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

(With inputs from ANI)