The Mumbai Port Trust has received nod from the coastal zone management authority to construct a fifth oil terminal to enable bigger ships to enter the harbour.
The proposal to set up the terminal at Jawahar Dweep, also known as Butcher Island, comes even as the Union shipping ministry is exploring the possibility of commercially exploiting a part of the port land.
The planned jetty will help oil companies to reduce oil processing costs by two to three dollars per barrel. The proposal has now been sent to the central government for final approval.
The tenders will be issued soon for dredging.