Thoothukudi’s Mega Terminal Gets a ₹15,000 Crore Green Light.

The Indian Railway Finance Corporation (IRFC), Sagarmala Finance Corporation Limited (SMFCL), and the V.O. Chidambaranar (VOC) Port Authority have signed a tripartite memorandum of understanding (MoU) to support the development of a mega container terminal at VOC Port in Thoothukudi, Tamil Nadu.

Under the agreement, joint funding will be provided for the construction of a breakwater and associated infrastructure as part of the Sagarmala Programme and the PM Gati Shakti National Master Plan. Financial assistance for eligible projects under the arrangement could extend up to ₹15,000 crore. The project will be implemented through the hybrid annuity mode (HAM), with the breakwater construction, capital dredging, and reclamation work for the backup yard estimated to cost ₹9,859.45 crore.

The tender for the project was issued in December, nearly two years after Prime Minister Narendra Modi laid the foundation stone in February 2024. Owing to project delays and increased dredging costs, the total project outlay has risen to ₹12,354.78 crore, reflecting a 75.1 per cent escalation.

News by Rahul Yelligetti.