THOOTHUKUDI: The Cabinet Committee on Economic Affairs (CCEA) has reportedly approved a major infrastructure development at V. O. Chidambaranar Port in Thoothukudi, Tamil Nadu, with a total investment of Rs 17,167 crore.
The project aims to construct a new outer harbour and expand container terminal capacity to support the rising volume of maritime trade along India’s southern coast.
The expansion initiative utilises two distinct financial structures.
Approximately Rs 11,733 crore has been earmarked for works under the Hybrid Annuity Model, where the government shares a portion of the project cost to reduce financial strain on private developers.
The remaining Rs 5,434 crore will fund container terminal construction through the Design-Build-Finance-Operate-Transfer model, with private operators assuming responsibility for construction and operations.
The project is expected to strengthen India’s position in the container transshipment sector by reducing dependence on foreign ports, particularly Colombo, which currently handles approximately 65 per cent of containers from Thoothukudi.
VOC Port, one of India’s 13 major ports and the second-largest in Tamil Nadu, currently handles seven per cent of the country’s total container traffic.
The expansion represents a transformative step that will support growing trade volumes, attract private investment, and contribute to the modernisation of India’s port ecosystem whilst generating employment opportunities in the region.
