Parliament Question: Mega Container Terminal Project at V.O. Chidambaranar Port

**Executive Summary** This document is an answer given in Lok Sabha in response to unstarred question number 2420, regarding the Mega Container Terminal Project at V.O. Chidambaranar Port, answered on February 13, 2026. The project has faced delays due to repeated failure of private bids. The project will be implemented under the PPP–HAM model as of December 2025. **Key Points / Main Content** * **Project Status and Revision:** * The Outer Harbour and Mega Container Terminal project at V.O. Chidambaranar Port faced delays due to non-responsive private bids. * The Port Authority undertook market outreach, restructured tender conditions, and adopted measures to enhance viability. * The project cost has been revised to ₹14,690.76 crore under a Hybrid Annuity Model (HAM) and Public Private Partnership framework. * The tender has been floated, with progress and timelines dependent on responsive bids and successful completion of the bidding process. * The revised project has been submitted to the Appraisal Authority as per Department of Economic Affairs guidelines. * **Port Capacity and Cargo Handling:** * V.O. Chidambaranar Port handled 41.72 million tonnes of cargo in 2024-25, with a growth rate of approximately 5% p.a. over the past 5 years. * The port currently has sufficient capacity to handle more cargo. * The outer harbor project would meet future container handling requirements. **Impact Analysis** **V.O. Chidambaranar Port Authority** * **Impact:** The Port Authority is responsible for project execution and has been actively involved in restructuring the tender process and enhancing the project's viability. * **Action Required:** The Port Authority must continue to manage the bidding process, ensure responsive bids are received, and oversee the successful completion of the bidding process. **Potential Bidders/Private Companies** * **Impact:** The restructured tender conditions and wider market outreach aim to attract responsive bids for the project. * **Action Required:** Assess the revised tender conditions and submit competitive bids to participate in the project. **Tamil Nadu's Export and Transshipment Potential** * **Impact:** The outer harbor project is intended to meet future container handling requirements, positively impacting Tamil Nadu's export and transshipment capabilities. * **Action Required:** None mentioned. **Appraisal Authority** * **Impact:** Responsible for reviewing the project as per Department of Economic Affairs guidelines. * **Action Required:** Review and approve the revised project based on the guidelines.

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