The Indian government has approved a proposal for building a large port on its western coast to connect it with major global trade networks and boost trade with Russia, New Delhi announced on Friday.
The port, to be built in Vadhavan in the Maharashtra state, would aid trade flow through the International North-South Transportation Corridor (INSTC) and the India Middle East Europe Economic Corridor (IMEEC), according to the announcement.
Proposed in 2000, the 7,200km-long INSTC was meant to transport goods from India to Russia via Iran as an alternative to the conventional Suez Canal route. However, the INSTC has yet to be fully implemented. The conduit has once again assumed significance in view of a sharp spike in trade between India and Russia.
During his visit to Moscow in July, Indian Prime Minister Narendra Modi stressed the importance of improving connectivity with Russia, which would mean developing the INSTC. The two countries have set a trade target of $100 billion by 2030.
An agreement for the IMEEC corridor, which aims to improve connectivity and economic integration between Asia, the Persian Gulf, and Europe, was signed last year at the G20 summit held in New Delhi. However, the project has run into delays due to the conflict between Israel and militants in Gaza.
Including the acquisition of land, the Vadhavan port would cost 76,220 rupees ($9 billion), Indian Ports, Shipping and Waterways Minister Sarbananda Sonowal told Parliament on Friday.
The port will be developed through a public-private partnership led by the Jawaharlal Nehru Port Authority and Maharashtra Maritime Board, according to Sonowal, who expects the project to create one million jobs.
The facility will handle 15 million TEU (twenty equivalent unit) containers after the first phase of construction is complete and 23.2 million TEUs after the commissioning of its second phase, the official told The Hindu Businessline in February.
Once completed, the port would rank among the world’s ten biggest container ports, according to The Economic Times, and is expected to be operational by 2030. The Indian government currently operates 12 major ports across the country.