PRE-FEASIBISLITY REPORT FOR OBTAINING ENVIRONMENTAL & CRZ CLEARANCE FOR BALANCE WORK OF CONSTRUCTION OF 14th & 16th CARGO BERTH THROUGH INTERNAL RESOURCES

By

DEENDAYAL PORT TRUST (ERSTWHILE: KANDLA PORT TRUST),

Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

CONTENTS

Chapter Title Page Nos. Nos. Executive Summary 2 1 Introduction 4 2 Introduction of the Project / Background 4 Information 3 Project Description 7 4 Site Analysis 14 5 Planning Brief 16 6 Proposed Infrastructure 16 7 Resettlement and Rehabilitation Plan 17 8 Project Schedule and Cost Estimate 17

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

EXECUTIVE SUMMARY Deendayal Port is one of the busiest Ports of . Deendayal Port has been achieving first position among all the Major Ports of India in the terms of cargo handling for the most of the years in last decade. Thus, Deendayal Port Trust has been contributing the most for the development of port capacity and handling seaborne trade of the country. Kandla is the nearest port for most of northern India comprising of the states of Rajasthan, Punjab, Haryana, Himachal Pradesh, Delhi, Jammu & Kashmir, Uttarakhand and parts of Uttar Pradesh. Many industries have also come up in the Kachchh&Saurashtra Regions of , which use the port for import of raw materials and export of finished goods. The project is designed to increase cargo handling capacity of the port, which will reduce turn-around time of ships. The improved efficiency will benefit shipping companies as well as port users by reducing costs. Increased cargo-throughput will also increase Deendayal Port’s income.Hence, considering the vast hinterland that is dependent on DPT for seaborne trade and currently prevailing traffic congestion at existing facilities of DPT, capacity additions are of utmost importance at DPT for serving the economy of the influence region and in turn, the economy of the whole country in the best possible manner. Presently Deendayal Port Trust has 14 Nos. of cargo berth located on the western side of Kandla Creek. The 6 oil jetties for handling POL products and other liquid cargo traffic at Deendayal and 3 Single Buoy Mooring (SBM) at Vadinar for handling crude oil. DPT has entered into concession agreement with concessioner to develop and operate container terminal at existing 11th & 12th cargo berth.

EC & CRZ Clearance Status: The MoEF, GoI had granted Environmental Clearance for Construction of 13th to 16th Cargo Berth at Kandla Port vide letter No 11-70/2006-IA-III dated September, 2008 as per the provisions of EIA notification, 2006 & CRZ notification, 1991. The validity period of EC for the subject proposal (vide letter dated Sep. 2008) is 5 years w.e.f. Sep, 2008 to August, 2013 as per the provisions of EIA notification, 2006. Further, MoEF & CC, GoI vide their letter No. 11/70/2006-IA-III dated 07/02/2014 has extended the validity of the Environment Clearance till 30/09/2018. Theproject parameters covered in the EC & CRZ Clearance granted by the MoEF,GoI consisting of 4 berth (each of size 300 m long X 55 m wide), area required for the project is 102.17 ha which includes backup area and common

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla. corridor, capital dredging 4 lakhs m3 ( 4 berths – for draught 14 m), and also area required for disposal of dredged material i.e. 1200m x 350 m.

BACKGROUND: Initially DPT had invited bids for construction, operation and maintenance of 13th to 16th Cargo Berth for the period of 30 years as per Public Private Partnership (PPP) guidelines of Ministry of Shipping, GoI in the year 2009. But, after opening of the financial Bid, only one bidder for 13th Cargo Berth i.e. H1 bidder was finalized. However, looking towards the lower revenue share quoted by the other bidders for 14th to 16th Cargo Berth, it was decided to re-invite the financial bids as advised by the Ministry of Shipping, GoI from among already prequalified bidders. Accordingly, bids were re-invited again during the period June 2010 and letter of award issued to H1 bidders for 14th, 15th & 16th Berth respectively. Among them, DPT signed concession agreement with H1 bidders of 15th (M/s JRE Infra. Pvt.Ltd.) & 16th (M/s PSL Ltd.), on 18/02/2011. However, bidder of 14th Cargo Berth was backed out and accordingly, as per the advice of Ministry of Shipping, GoI afresh RFQ was invited for 14th Cargo Berth during the period September 2011 and finally DPT signed concession agreement with H1 bidder of 14th Cargo Berth also on 14/03/2013. BOT operator, of berth no. 13th (M/s RAS Infra.Port )& of berth no. 15th completed the construction works and started commercial operations on the said berths. The Concession Agreements with BOT operators were terminated due to non-fulfillment of obligation as per the provisions of the Concession Agreement, by the BOT operators. Subsequently, as per the advice of Ministry of Shipping, GoI Construction of 14th Berth for Multipurpose Cargo (other than Liquid/Container) & 16th Berth for Multipurpose Cargo (other than Liquid) is implement through internal resources of DPT. Accordingly, during March, 2017, DPT awarded the work of construction of 14th& 16th Berths to the L 1 contractor M/s AFCONs with scheduled date of completion 14th May, 2019 and accordingly, they have started the construction work from May, 2017 and the same is under progress. The project falls under Category “A”, listed in item no 7 (e) as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the Ministry of Environment &Forest, New Delhi.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

The project area is located in the Cargo Berth area of Deendayal Port, Kandla. The area falls under the village Kandla in Taluk of Kachchh District of Gujarat between at Latitude: 23° 01’N Longitude: 17°13’E on shores of Kandla creek.

1.0 INTRODUCTION Deendayal Port is a major port located at the north-western apex of the Gulf of Kutch in Gandhidham Taluk of Kachchh District of Gujarat. The port is presently handling 110 Million Tonnes per Year (Mt/yr) of cargo which is the highest amongst all Indian Ports. Presently, Kandla Port handles dry cargo at its 14 general cargo berths, 6 oil jetties for handling POL products and other liquid cargo traffic at Kandla and 3 Single Buoy Mooring (SBM) at Vadinar for handling crude oil. The traffic handled by the Port has shown a consistent increase and growing at a faster pace. The total traffic (both liquid and dry cargo) handled by the Port has gone from 41.52 million tones in 2003-04 to 105.00 million tones in 2016 -17. It shows the CAGR of 8.10% over the said ten years’ period. During 2015-16, Deendayal Port handled 110.00 MMT of cargo, which is 16.50% of total cargo traffic handled by all twelve major ports. Dry cargo (excluding liquids and containers) have been the significant portion of the total cargo handled at DPT. It has been hovering around 25-32% during the last decade. Dry cargo traffic has been growing steadily at CAGR around 8% during the last 10 year’s analysis.

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION:

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Kandla, also known as the Deendayal Port Trust is a seaport in of Gujarat state in , near the city of Gandhidham. The Deendayal Port is situated in the Kandla Creek and is about 90 nautical miles from the mouth of Gulf of Kachchh. Deendayal Port's journey began in 1931 with construction of RCC Jetty by MaharaoKhengarji. Located on the Gulf of Kutch, it is one of major ports on west coast. Kandla was constructed in the 1950s as the chief seaport serving western India, after the partition of India from left the port of in Pakistan. The Port of Deendayal is located on the Gulf of Kutch on the northwestern coast of

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

India some 256 nautical miles southeast of the Port of Karachi in Pakistan and over 430 nautical miles north-northwest of the Port of Mumbai (Bombay). It is the largest port of India by volume of cargo handled. It rose to the No. 1 Port in India in the year 2007-08 and since then retained the position for the 10th' consecutive year.

2.2 BRIEF INFORMATION OF THE PROJECT: Presently Deendayal Port Trust has 14 nos. of cargo berth located on the western side of Kandla Creek. The 6 oil jetties for handling POL products and other liquid cargo traffic at Deendayal and 3 Single Buoy Mooring (SBM) at Vadinar for handling crude oil. DPT has entered into concession agreement with concessioner to develop and operate container terminal at existing 11th & 12th cargo berth. Out of total four berths, construction activities of CB no. 13th & 15th completed by the BOT operator of the said berths (M/s RAS Infraport & M/s JRE Infra.Pvt.Ltd.) and also started commercial operation from the year 2013. However, concession agreements were terminated with the BOT operators due to non fulfilment of obligations by them. DPT has taken over the physical possession of CB no. 13th & now, operating the berth no. 13. But, BOT operator of 15th CB yet not handed over the possession of berth to DPT (under arbitration).

The present status of the 14th&16th Cargo Berth is as under: 14th Cargo Berth –. DPT has assigned the Work for Construction of berth to M/s. AFCONS& accordingly, they have started construction from 15/5/2017. The construction of CB is in progress with scheduled date of completion as 14/05/2019.

16th Cargo Berth – DPT has assigned the Work for Construction of berth to M/s. AFCONS & accordingly, they have started construction from 15/5/2017. The construction of CB is in progress with scheduled date of completion as 14/05/2019. There are no changes in the project configuration, capacity and pollution load and they remain same as per Environmental &CRZ clearances obtained.

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION: Kandla is the nearest port for most of northern India comprising of the states of Rajasthan, Punjab, Haryana, Himachal Pradesh, Delhi, Jammu & Kashmir, Uttarakhand and parts of Uttar Pradesh. Many industries have also come up in the

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

Kachchh&Saurashtra Regions of Gujarat, which use the port for import of raw materials and export of finished goods. The proposed project is designed to increase cargo handling capacity of the port, which will reduce turn-around time of ships. The improved efficiency will benefit shipping companies as well as port users by reducing costs. Increased cargo- throughput will also increase Deendayal Port’s income.

Dry Cargo Traffic Projections at Deendayal Port Trust as per MaritimeAgenda – 2020 Traffic Projections MMT for Dry Cargo Year excluding containers 2012-13 31.65 2013-14 37.82 2014-15 43.26 2015-16 48.38 2016-17 55.52 2017-18 60.96 2018-19 65.25 2019-20 83.80

2.4 DEMAND AND SUPPLY GAP: Dry cargo (excluding liquids and containers) have been the significant portion of the total cargo handled at DPT. It has been hovering around 25-32% during the last decade. Dry cargo traffic has been growing steadily at CAGR around 8% during the last 10 year’s analysis.

Dry Cargo Traffic (excluding containers) has been growing at 8.12% over the past 10 years which, of course includes fairly prolonged period of recession and low growth. However, this may be expected to improve along with improvement of the facilities at DPT, better overall economic environment of the country.

The Country’s GDP is growing at present at an average growth rate of 5-6% and this growth rate is going to be accelerated to 7-8% in coming years. Traffic of Dry cargo has been projected in Maritime Agenda 2020 issued by Ministry of Shipping for future period based on the potential of traffic of dry cargos originating from

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

Hinterland, industries coming up in the Kutch region, development of port infrastructure and country’s Economy.

2.5 IMPORT VS INDIGENOUS PRODUCTION: Not applicable for this project.

2.6 EXPORT POSSIBILITIES: Deendayal Port practices trade friendly, output oriented and progressive berthing policy. The berthing policy categorizes vessels into Export group, Import Group, Container Group.

2.7 DOMESTIC / EXPORT MARKET: The Port has developed storage facilities for dry cargo inside the custom bounded area for storage of import and export cargo.

2.8 EMPLOYMENT GENERATION: The project would generate both direct and indirect type of employment opportunities.Project would require the manpower for implementation as well as operation periodwhich is a direct employment. Moreover, the project would enhance theindirect economic activity in the industries like basic materials i.e., cement, steel,Logistics services, Transportation and many more.

3.0 PROJECT DESCRIPTION

3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTER-DEPENDENT PROJECT The project falls under Category “A”, listed in item no 7 (e) as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the Ministry of Environment &Forest, New Delhi.

3.2 LOCATION: The project area is located in the Cargo Berth area of Deendayal Port, Kandla. The area falls under the village of Kandla in Gandhidham Taluk of KachchhDistrict of Gujaratbetween at Latitude: 23° 01’N Longitude: 17°13’E on shores of Kandla creek.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

3.3 DETAILS OF ALTERNATE SITE: No alternative site is considered (application is for remaining work of 14th & 16th CB).

3.4 SIZE AND MAGNITUDE OF OPERATION: The present status of the 13th to 16th Cargo berth is as under: There are no changes in the project configuration, activity, capacity and facilities and they remain same as per Environmental &CRZ clearances obtained.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

14th CB 16th CB Sr. Work Work to Work Work No Types of Activities 13th CB Remaini 15th CB to be Remaining be carried completed complete . ng work carrie work out till date d till date d out Berthing 352 Piling work 344 nos 172 nos 172 nos 204 nos. 148 nos. Structure nos. 1 Completed Completed (300m x &1650 Super Structure 16500 m2 500 m2 16000 m2 375 m2 16125 m2 55m) 0 m2 Reclamatio 100 % 100 % 40 % 60 % 2 n (a) Backup are Filling work Completed Completed (21.70 65 % 35 % (28.35 Ha) Ha) (b) The area (earmarked for disposal of dragged material) for development of roads ------1200 m x 350 m (Remaining work)------railways and other ancillary facilities.

Completed Completed Completed Completed 3 Dredging Capital Dredging

Capacity of 4 MMTPA 4.5 4.5 4.5 4.5 each Berth

Project Commercial Commercial Scheduled date of completion Expected date of completion as 14/05/2019 Implement operation operation 5 as 14/05/2019 (Estimated cost 278 crores) ation started on started on (Estimated cost 253 crores) Schedule 18/02/2013 16/11/2013

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

Dry Cargo Berths

ProjectSites

ite Fig; Google Earth Image of Deenadayal Port Area

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

Figure: 2- Google Earth Image of 14th& 16th CB

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

3.5 PROJECT DETAILS The construction of Jetty with wharf length of 300 m X 55 m from internal resources. The jetty shall be used for handling of cargo (other than liquid/ container). Further, cargo handled at the Jetty shall be stored in back up area of 28.35 ha& 21.70 Hafor 14th& 16th CB respectively. Capital dredging is completed as per earlier EC. Maintenance dredging will continue.

Name of Project Construction of 14th CB through internal resources for remaining work Length of the wharf 300 meters Width of the wharf 55 meters Back Up Area in Ha 28.35 Design Vessel Size 75000 DWT Optimal Capacity - 4.5 Multipurpose Cargo (in MMTPA) Design load for wharf 5 MT/m2 Draught and Depth 13m & -14.1 m below CD Alongside the Berth Capital Cost ₹253.00Cr. Source of funds Internal Resources Project time Schedule 24 months from the Date of Issue of Work Order Expected FY 2019-20 Commissioning by End of - Viability Indicators Financial IRR 15.32% Economic IRR 17.42%

Name of Project Construction of 16th CB through internal resources for remaining work

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

Length of the wharf 300 meters Width of the wharf 55 meters Back Up Area in Ha 21.70 Design Vessel Size 75000 DWT Optimal Capacity - 4.5 Multipurpose Cargo (in MMTPA) Design load for wharf 5 MT/m2 Draught and Depth 13m & -14.1 m below CD Alongside the Berth Capital Cost ₹278.00Cr. Source of funds Internal Resources Project time Schedule 24 months from the Date of Issue of Work Order Expected FY 2019-20 Commissioning by End of - Viability Indicators Financial IRR 14.23% Economic IRR 16.17%

3.6 RAWMATERIALS Not applicable. Handling of Dry Cargo on berths.

3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE This is to develop thefacilities for export and import of cargoes through Port. Port isgoing to conduct study for identifying the gap to attain the Environment Standards aspart of the ISO 14001 Certification. The suggestion for improvementswill beimplemented.

3.8 SITE SERVICES 3.8.1 WATER REQUIREMENT: The water requirement for construction of 14th & 16th CB – remaining work, shall be met by the contractor through GWSSB/Tanker supply. Water requirement for domestic purpose is 90 KLD.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

3.8.2 POWER REQUIREMENT The power requirement shall be met through PGVCL.

3.8.3 AMENITIES The Port has all necessary amenities for personnel working in the port area, including rest shelters with drinking water and toilets. Canteen facilities are also available. First centers are available in the port area. Ambulances are available in the port area round the clock for casualty evacuation.The port has housing facilities for its personnel at Kandla as well as at Gandhidham. The port has also provided housing arrangements for CISF personnel deployed at the port. The port has its own well equipped hospital.

3.9 QUANTITY OF WASTES TO BE GENERATED (LIQUID AND SOLID) AND SCHEME FOR THEIR MANAGEMENT/ DISPOSAL.

3.9.1 SOLID WASTE GENERATION & ITS DISPOSAL Solid waste from the common area is to be collected and disposed-off in themunicipal landfill. The Lessees will have to manage their own waste.

3.9.2 LIQUID EFFLUENT Sewage will be treated in proposed STP and treated water will be utilized for flushing & green belt.

4.0 SITE ANALYSIS 4.1 CONNECTIVITY Deendayal Port, Kandla can be approached from Gandhidham by NH-8A. Gandhidham is linked to the national road network. The nearest railway station is at Gandhidham (~8 km away). Deendayal Port is linked to Gandhidham through its own railways. The nearest airport is also at Gandhidham (~14.5 km away).

4.2 LAND FORM, LAND USE, OWNERSHIP The project area is located in the Cargo Berth area of Deendayal Port, Kandla. Part of the project area extends over Kandla Creek. The area is in the possession of Deendayal Port Trust.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

4.3 TOPOGRAPHY The area is absolutely flat.

4.4 LAND USE The entire project area is located on the western bank of Kandla Creek and is within the Cargo Berth Area of Deendayal Port.

4.5 EXISTING INFRASTRUCTURE Deendayal Port being the largest port in the country (in terms of cargo handling) has comprehensive infrastructure for receipt, handling and dispatch of cargo. These facilities are owned and operated by Deendayal Port Trust, other port users(both public sector and private sector) as well as service providers. The port also has a dedicated Fire Department with comprehensive resources for fighting major fires. The port has its own well equipped hospital for its employees and their families. The port has townships for housing its own employees as well as CISF personnel. The port has also developed comprehensive social infrastructure.

4.6 SOIL CLASSIFICATION The soil of the project area is mostly fine silt and sand.

4.7 CLIMATE The study area lies in the tropical zone. The climate is semi-arid with very hot summers and cool winters. The average daily maximum temperatures during April, May and June (the hottest months), as recorded at the India Meteorological Department (IMD) Observatory at New Kandla are 35.3oC, 36.0oC and 35.1oC respectively. During these months maximum temperatures may exceed 45oC.December, January and February are the coldest months. The average daily minimum temperatures during these months, as recorded at IMD, New Kandla are 15.3oC, 13.6oC and 15.9oC respectively. The mean annual rainfall is 401.4 mm most of it (~91%) during the monsoon which lasts from June to September. The wettest months are July, August, June and September in that order.

The winds are generally moderate to high. The annual mean wind speed prevailing in the area is around 18 km/hr. Winds are usually stronger during late summer and monsoons. During summer and monsoon winds blow from SW and W, whereas

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla. during winter winds blow from N or NE. SW and W are the pre-dominant annual wind directions.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE: As has been mentioned earlier, Deendayal Port Trust has developed comprehensive infrastructure for its employees comprising of housing colonies with health-care, education, shopping, banking, postal services and entertainment facilities. Additional facilities are available in Gandhidham town.

5.0 PLANNING BRIEF: 5.1 PLANNING CONCEPT: There are no changes in the project configuration, activity, capacity and facilities and they remain same as per Environmental&CRZ clearances obtained

5.2 LAND USE PLANNING: The project area covers ~50.05 ha entirely within the premises of Deendayal Port. No additional land will be required for the remaining work of 14th& 16th Cargo Berth. Hence there will be no change in land use / land cover within the existing premises.

5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND Deendayal Port is an existing bustling port with all necessary infrastructure. The remaining work of 14th& 16th Cargo Berth will utilize the existing infrastructure.

5.4 AMENITIES / FACILITIES Deendayal Port is operating since the 1960s and has adequate amenities / facilities for its work-force. These are always being improved upon / upgraded as and when required.

6.0 PROPOSED INFRASTRUCTURE: As mentioned earlier, Deendayal Port has comprehensive infrastructure for handling dry as well liquid cargo. The infrastructure is constantly being upgraded to meet the requirements of port users, shipping companies and regulatory agencies both Indian as well as international.

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Pre-Feasibility Report for Construction of 14th & 16th CB through internal resources-EC & CRZ Clearance for Balance work at DPT, Kandla.

7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN: Land is already owned as well as in the possession of Deendayal Port Trust.Hence the question of resettlement and rehabilitation of land oustees does not arise.

8.0 PROJECT SCHEDULE & COST ESTIMATE 8.1 PROJECT SCHEDULE 14th Cargo Berth – The construction of CB is in progress with expected date of completion as 14/05/2019

16th Cargo Berth - The construction of CB is in progress with expected date of completion as 14/05/2019

8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT 14th Cargo Berth – The total project cost is estimated to be Rs. 253.00 Crores (Rupees Two Hundred and fifty three Crores Only).

16th Cargo Berth - The total project cost is estimated to be Rs. 278.00 Crores (Rupees Two Hundred and Seventy eight Crores Only).

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