Controversy Brews As Maharashtra Maritime Board Pursues Murbe Port, Just 40 Kms Away From Vadhavan Project

The Maharashtra Maritime Board (MMB) has initiated global price bids for the construction of a new port at Murbe in Palghar district, sparking controversy over its proximity to the Vadhavan Port project led by the Union government.

The move follows a proposal by JSW Infrastructure Ltd, headed by Sajjan Jindal, to build the new port, situated just 40 kilometres away from the ongoing Vadhavan Port development as per a report by The Economic Times.

The estimated cost of the Murbe Port stands at approximately Rs 4,259 crore.

Despite MMB's 26 per cent stake in the Vadhavan Port project, which recently received environmental and coastal regulation clearances, the board has proceeded with the bidding process for the Murbe Port.

Under the Swiss Challenge method, the original project proponent, JSW Infrastructure, will have the opportunity to match the highest bid discovered through an open auction.

If JSW Infrastructure declines, the deal will be awarded to the highest bidder.

The proposed Murbe Port, planned under a public-private partnership (PPP) model, aims to adopt the design, build, own, operate, and transfer (DBOOT) approach.

The preferred bidder will be selected based on the highest minimum assured annual income offered to MMB.

However, concerns have been raised about the lack of scientific studies and prior environmental assessments for the Murbe Port project.

Critics argue that the area is ecologically fragile and faces potential legal challenges and opposition from locals and fishermen, similar to those encountered during the approval process for the Vadhavan Port.

Connectivity also presents a significant challenge for the Murbe Port, particularly regarding rail links and highway crossings, which may require extensive infrastructure development.

Despite these challenges, JSW Infrastructure has proposed Murbe as an alternative location following protests against its initial plan in Thane district.

However, some industry insiders suggest that JSW Infrastructure could have explored expansion opportunities at the Vadhavan Port instead of pursuing a new project at Murbe.

The Vadhavan Port, with an estimated operational start by 2030, remains a focal point for port development in the region.