The Jawaharlal Nehru Port Authority (JNPA) has cleared a proposal for the Rs 20,647-crore project to develop Vadhvan Port in Maharashtra, involving dredging, offshore reclamation, and shore protection works. It is set to unfold in two phases under a public-private partnership (PPP) hybrid annuity model (HAM).

The project entails reclaiming 1,200 hectares of land over five years, and the first phase involves reclaiming of 800 hectares of land over three years. The second phase will reclaim an additional 400 hectares over two years. The phased payment structure allows contractors to receive 60 percent of the contract value during the development period, with the remaining 40 percent to be paid during a 10-year maintenance phase to improve cash flow.

The proposal will be reviewed by the Ministry of Ports and the PPP Appraisal Committee. Maintenance dredging, which is a cost concern, has been excluded from the contract to encourage participation.