The Indian Railway Finance Corporation (IRFC), Sagarmala Finance Corporation (SMFCL), and VOC Port Authority have signed a tripartite memorandum of understanding (MoU) for a mega container terminal at VOC Port in Thoothukudi, Tamil Nadu.

The joint funding will be for the construction of a breakwater and related facilities fwhich is part of the Sagarmala programme and the PM Gati Shakti National Master Plan, could reach up toRs 15,000 crore for eligible projects. The project will be financed through hybrid annuity mode (HAM), with an estimated cost of Rs 9,859.45 crore for the construction of the breakwater, capital dredging, and reclamation work for the backup yard. This follows a tender issued in December, two years after Prime Minister Narendra Modi laid the foundation for the project in February 2024. 

The total project cost has now escalated to Rs 12,354.78 crore, a 75.1 percent increase due to delays and higher dredging expenses.