Balagarh port project seeks PPP bids for Rs 407 crore plan

A Rs 407-crore Balagarh port project in Hooghly has moved towards implementation after Balagarh Port Infrastructure Development Ltd (BPIDL) sought proposals to develop container and coal berths through a public-private partnership model.

The project is being developed by BPIDL, a joint venture between Syama Prasad Mookerjee Port Kolkata (SMPK) and the Inland Waterways Authority of India (IWAI). It is intended to reduce congestion caused by cargo movement through Kolkata’s urban areas, lower logistics costs and create an alternative trade hub outside the city.

According to a senior SMPK official, the proposal covers container and coal berths along with a mechanisation project. The official said the work order is expected to be issued within a year, with the berths targeted to become operational by October 2029.

The land required for the project is available with SMPK. The selected private partner will develop and operate the facility on a design, build, finance, operate and transfer basis. After the bidding process, BPIDL will sign a 30-year concession agreement with the successful bidder.

The bids will be evaluated on the basis of the highest royalty offered per metric tonne of cargo, with the project to be awarded to the bidder offering BPIDL the highest royalty, according to officials cited in the announcement.

The planned berths are expected to provide annual capacity of 1.9 million tonnes for container cargo and 0.8 million tonnes for bulk cargo. SMPK intends to shift part of its operations to Balagarh to address restricted cargo movement within Kolkata and accommodate projected growth in traffic.

The proposed facility is part of efforts to redistribute port-related cargo activity beyond the city’s existing operational areas. By developing container and bulk cargo handling capacity in Hooghly, the project is expected to provide an additional location for cargo operations connected to the Kolkata port system.

The next formal milestone will be the bidding process and selection of a private concessionaire. BPIDL is expected to issue the work order within a year, while commercial operations are scheduled to begin by October 2029.