The Mumbai Port Authority (MbPA) is making fresh efforts to revive the long-stalled Indira Container Terminal by exploring a change in its cargo profile, a move that could unlock significant investments and improve utilisation at the public-private partnership (PPP) facility.
MbPA Chairman M. Angamuthu said the port authority has sought the opinion of the Attorney General on amending the terminal’s concession agreement to permit the handling of clean and non-hazardous cargo, alongside containers.
“The terminal is operating at only one-third of its capacity. I believe it can generate two to three times its current throughput. The project had immense potential, but certain shortcomings prevented it from achieving its intended objectives,” Angamuthu said.
Based on the Attorney General’s advice, MbPA may either sign a supplementary agreement or amend the existing concession agreement in consultation with the concessionaire.
According to Angamuthu, the private operator has indicated its willingness to invest nearly ₹2,000 crore if the proposed cargo profile change is approved.
“We want this to be a win-win situation. The concessionaire has already invested substantially, and we want the private partner and the port authority to work together to realise the project’s full potential,” he added.
The 1.2 million TEU-capacity Indira Container Terminal was awarded nearly two decades ago to Indira Container Terminal Pvt Ltd, a 50:50 joint venture between AJR Infra and Tolling Ltd (formerly Gammon Infrastructure Projects Ltd) and Spain’s Noatum Ports (formerly Dragados SPL), after the consortium quoted the highest revenue share of 35.064 per cent.
The proposed revision would allow the terminal to handle steel, Roll-on/Roll-off (RoRo) cargo, project cargo, and non-hazardous liquid cargo, in addition to container traffic. Sources said the terminal has already been handling steel, RoRo and project cargo under an ad hoc arrangement since 2015.
Officials noted that only clean cargo would be permitted, considering the terminal’s proximity to Mumbai city.
If approved, the cargo profile modification would mark only the second instance where a PPP cargo terminal at a major Indian port has been allowed to change its originally designated cargo mix after the concession was awarded.
The terminal has faced prolonged financial and operational challenges over the years. Earlier efforts to resolve disputes through the Conciliation and Settlement Committee mechanism could not be concluded because of the complexity of the case.
The project was subsequently admitted to insolvency proceedings after lenders led by Canara Bank approached the National Company Law Tribunal over unpaid dues. It was later revived through financial support from the Bothra Group and Kakinada Seaports Ltd, which helped the company emerge debt-free from insolvency proceedings. In return, the two investors jointly acquired a 48 per cent stake in Indira Container Terminal.
The proposed cargo diversification is expected to improve asset utilisation, generate additional revenue for both the concessionaire and the port authority, and breathe new life into one of Mumbai Port’s long-delayed infrastructure projects.
