Adani Ports, MEIL, and Vishwa Samudra in the fray for VOC Port's outer harbour project

According to a BusinessLine report, Adani Ports and Special Economic Zone Limited, Megha Engineering and Infrastructures Limited (MEIL), and Vishwa Samudra Engineering Private Limited are in the race to bag the ₹11,733-crore outer harbour infrastructure project at the V.O. Chidambaranar (VOC) Port in Tuticorin.

Sources from the VOC Port Authority (VOCPA) have confirmed that these three companies are competing for the project, which is to be implemented under the hybrid annuity model (HAM). This project is part of the broader outer harbour development plan totaling ₹17,167 crore, aimed at expanding the port's marine infrastructure and strengthening Tuticorin's long-term position in India's international trade and connectivity network.

According to port authorities, the entire project includes harbour infrastructure development at a cost of ₹11,733 crore and a container terminal to be developed in two phases at an estimated cost of ₹5,434 crore. The container terminal will be implemented under the design, build, finance, operate and transfer (DBFOT) model.

The Cabinet Committee on Economic Affairs (CCEA) recently approved the project, clearing the way for the construction of major new harbour infrastructure at the port and the creation of additional container-handling capacity. In December, the VOCPA issued tenders for the outer harbour development project for the third time, shifting towards the hybrid annuity model in an effort to attract greater private sector participation.

This project was originally conceived under the design-build-finance-operate-transfer model. However, to make the project more attractive to private developers, port authorities subsequently opted for the HAM method, a financial and implementation framework widely adopted in the road infrastructure sector.

Under HAM, 40 percent of the project cost is contributed by the government during the construction phase, while the private developer provides the remaining 60 percent of the funds. This model combines elements of the engineering, procurement and construction (EPC) and build-operate-transfer (BOT) frameworks, sharing financial and implementation risks between the public authority and the private digital reality.

The objective of this arrangement is to reduce the upfront financial burden on the developer while ensuring public sector participation in infrastructure funding, thereby facilitating project implementation and its long-term sustainability. All these details have been stated by the port authorities.