Infrastructure
Karnataka Deepwater Greenfield Port Projects: JSW Infrastructure Emerges As Sole Bidder For Keni, No Bids For Pavinakurve As Adani Stays Out
Port Karwar
JSW Infrastructure Ltd, the port’s unit of Sajjan Jindal-led JSW Group, has emerged as the sole bidder for the global tender floated by Karnataka Maritime Board for the development of an all-weather deep water greenfield port at Keni-Belekeri in Uttara Kannada district of Karnataka on a design, build, finance, operate, transfer (DBFOT) model, ET Infra reported.
No bids were received for another tender for a greenfield port at Pavinakurve near Honnavar.
In September 2022, the Bharatiya Janata Party (BJP) government in Karnataka, led by Chief Minister Basavaraj Bommai, invited global tenders to develop deepwater greenfield ports at Keni-Belekeri and Pavinakurve.
As per the terms and conditions of the Keni port tender, the winner will be decided based on royalty per metric ton (mt) of cargo handled at the port and the entity quoting the highest royalty per metric ton of cargo to the Karnataka government will get the nod to operate the port for 30 years.
Adani Ports and Special Economic Zone Ltd (APSEZ), India’s biggest private port player, was widely expected to bid for the greenfield port projects but decided not to enter the fray.
According to the ET Infra report, the lack of response to global tenders may have driven by conditions like placing the onus on the private port developer to secure environmental and coastal regulation zone clearances, land acquisition for the port as well as for constructing rail. The road connectivity to the ports and the cost of acquiring the land, is also with the private developer
Keni-Belekeri Greenfield Port
The Konkan Railway line is about 4 km away. Ankola, the nearest railway station, is approximately 6.7 km southeast of the site.
Rail connectivity to the project site is proposed on the southern side of the port, which is connected with the existing Konkan line to the north of Ankola station.
Private entrepreneurs, including Salgoankar Mining, Tungabadhara Minerals and Adani Export, have already created loading chutes and other infrastructure facilities for handling bulk cargo at anchorage. Belekeri Port has a vast stacking area, approximately 100 acres.
Once complete, the first phase of greenfield port development at Keni is expected to handle 18 MTPA (million tonnes per annum), including 3 MTPA of thermal coal and 12 to 17 MTPA of coking coal —12 to 17 MTPA.
The initial investment for developing the port is around Rs 2,783 crore. Additional rail and road connectivity is estimated to cost Rs 225 crore.
Pavinakurve Port
The proposed captive port near Pavinakurve village of Honnavar taluk of Uttara Kannada district is expected to play an instrumental role in handling mineral, agricultural, horticultural and marine products.
Karnataka has a vast wealth of minerals such as iron ore, manganese ore, limestone, bauxite and granite. Pavinakurve will be instrumental in transporting the goods from these areas.
The land for the proposed project will comprise the Basavaraj Durga island and the seashore of Pavinakurve village, including the reclamation area.
Phase 1 of the port will be developed at an investment of Rs 800 crore with a capacity for handling 5 MTPA. Phase 2 of the port is proposed to be developed at an investment of Rs 1,767 crore with the capacity to handle 14 MTPA.
The port will be developed by constructing a 1,000-metre-long wharf. Land and site for the jetty will be leased out to the developer on a concession basis for 30 years.
Pavinakure port is expected to handle 10 MTP.
Port-led Development Strategy And Karnataka Maritime Board (KMB)
The KMB aims to facilitate seamless supply-chain logistics for cargo movement within the state and international transhipment hubs.
The state's port policy seeks to develop commercial ports, increase their capacity for handling more cargo, decongest highway traffic by providing facilities for coastal shipping of passengers and cargo traffic, build more captive ports through a PPP model, and create facilities to handle at least 5-10 per cent of the country's cargo.
The state government will invest up to 11 per cent in all PPP port projects and requires the state government to take up the mantle of acquiring land even for private port projects.
In addition, it aims to convert all ports from fair-weather (seasonal) to all-weather ports.
Karnataka's port-led growth model is also getting a much-needed impetus from the Union government's maritime ambitions.
As part of its efforts to attract international investment, the state government is organising a global investors' summit in November to attract significant private capital.
