State-owned Cochin Port Authority has initiated a major land monetisation plan, offering nearly 140 acres in two separate parcels on long-term lease for commercial and hospitality development. The move is expected to generate more than ₹500 crore in upfront revenue, according to multiple sources.
On November 17, the port issued a tender to lease 22.38 hectares (55.30 acres) situated on the southern side of NH-966B, the road linking Willingdon Island to NH-66 at Kundannoor Junction. A second tender to lease an additional 85-acre parcel will be released soon, a government official confirmed.
The tender allows the land to be developed for a wide range of commercial and public-use facilities, including hotels, convention centres, office complexes, stadiums, educational institutions, hospitals, and public spaces. The port authority has set a reserve annual lease rent of ₹12,70,26,495 per hectare (excluding GST) for the first 22.38-hectare plot.
The lease will run for an initial 30 years, with an option for renewal for another 30 years. Bidders must quote above the reserve price, and the highest bid will serve as the floor rate for a subsequent e-auction, with final allocation going to the top bidder.
According to officials, Cochin Port Authority is monetising land where port-related activities are not feasible. Interest from at least three to four private parties prompted the decision to float the tenders.
Asset monetisation through the Public-Private Partnership (PPP) mode has been slow at Cochin Port due to its distinct cargo profile. About 60% of the port’s traffic comprises oil cargo handled directly by state-run oil marketing companies, while 30% is container traffic managed at the DP World-operated International Container Transhipment Terminal. The remaining 10% includes mostly cement cargo.
“The berths handling oil cargo cannot be privatised as they are operated by the oil companies themselves. Privatisation would significantly reduce the port authority’s revenues. At the same time, the limited share of non-oil and non-container cargo offers little incentive for private operators,” the official said, adding that PPP-based asset monetisation is therefore unlikely to take off at Cochin Port.
The land-lease initiative is now seen as a more viable route for the port to unlock value from its non-operational land holdings.
