The Centre has moved to restructure the proposed ₹17,000-crore mega harbour project at V.O. Chidambaranar (VOC) Port in Thoothukudi, Tamil Nadu, after the project failed to attract bidders over the past two years.
The proposed development is a major infrastructure initiative aimed at expanding the port’s capacity, strengthening maritime connectivity and supporting the growth of India’s international trade. However, the lack of investor participation has prompted the government to revisit the project’s structure to make it more attractive to potential developers and investors.
The revised approach is expected to address the challenges that may have discouraged bidders, including project viability, investment requirements and commercial considerations. Reworking the project framework could help improve investor confidence and create a more favourable environment for private-sector participation.
VOC Port is strategically positioned on India’s southeastern coast and plays an important role in handling cargo for Tamil Nadu and neighbouring industrial regions. The proposed mega harbour is expected to strengthen its ability to accommodate future cargo growth and support the development of logistics and port-linked industries.
The restructured project is estimated to cost ₹17,167 crore, with ₹11,733 crore allocated for core harbour infrastructure and approximately ₹5,434 crore for container terminal development and operations. The revised model is intended to distribute investment risks more effectively and encourage private participation.
Once completed, the Outer Harbour project is expected to handle around 4 million to 5.2 million TEUs annually and accommodate ultra-large container vessels carrying up to 24,000 TEUs, with an 18-metre draft. These capabilities could strengthen VOC Port’s position as a major transshipment hub on India’s east coast and improve connectivity for export-import cargo.
The Cabinet Committee on Economic Affairs approved the revised project in September 2026, marking a significant step towards advancing the long-delayed development.