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CCEA clears grant for Tamil Nadu dredging project

Friday, 21 Mar 2014

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The Cabinet Committee on Economic Affairs (CCEA) has given its approval for providing financial assistance for dredging work at V O Chidambaranar Port Trust (VOCPT) located in Tuticorin, Tamil Nadu.

CCEA has approved financial assistance of Rs 224 crore for the project which involves dredging in front of North Cargo Berth-II, and two numbers of shallow draught berths at V O Chidambaranar Port.

The entire cost of the project is about Rs 448 crore, inclusive of dredging cost, mobilisation and de-mobilisation charges, service tax and contingencies.

The Committee has approved only 50 per cent of the total project cost. The project is likely to be completed in nine months from the date of award of work.

This project is part of the government's initiative to boost cargo handling capacity at major ports in India.

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