Five new port projects approved by Cabinet
New Delhi: The Shipping Ministry’s proposal for five port projects was recently approved by the Cabinet. The proposal involves handing out land to builders on a long-term basis. Out of the five ports four would be implemented on the basis of a public-private partnership (PPPs).
The four projects comprise the ones which would be established at Cochin Port, Chennai Port, Haldia Dock Complex at Kolkata and Kandla Port. The bidding process for the projects at Chennai and Kochi are still on, while the remaining two have already been awarded.
Furthermore, a project to provide land on the basis of lease with the objective of establishing a cement bagging plant at Cochin Port to has been approved by the Cabinet. This project is based on tender-cum-auction.
Since, licensing land to the port developer for long-term periods is involved in the proposal; the approval of the Cabinet was required by the Shipping Ministry.
As per an official release, this decision would facilitate in expeditiously augmenting the ports capacity via PPP and bring about efficiency within operations at prominent ports, which would in turn profit the trade as well as the economy as a whole.
Affects on Chennai’s real estate:
The city of Chennai which is located on the north-eastern tip of the southern Indian is the fourth largest city of the country. Being located on the Coromandel Coast, Chennai is often referred to as the `Gateway to the South’ and serves as major port hub along the shorelines of Bay of Bengal.
Areas such as Manali, Tondiarpet, Vyasarpadi, Tiruvottivyur, Washermenpet which are located in the northern regions of the city, have been largely impacted by due to their proximity with the port as well as the port related activities. The realty market in North Chennai is typically driven by port-related activities which are relevant within the region apart from the trader community and employees of the public sector.
The port charges an exuberant sum in fees and fine for holding a cargo more than the stipulated time provided for it to be cleared from the port premises. Due to this reason the localities nearby have witnessed a significant appreciation of over 25 per cent over the past two fiscals within the values of lands and plots. This increase has chiefly being driven up due to the demand for warehouses.
A huge legion of workforce belonging either to the multitude of small or medium scale industry as well as government officials are mainly driving the demand for residential units within North Chennai. Smaller projects having basic amenities are typical being established within this belt. Property prices within this region are in the price tag of Rs 5,200 to 6,300 per square feet depending upon the developer, specifications as well as the location.
Hopefully, with the establishment of the new port project, which is rumoured to be established towards the southern shorelines of the city should in turn boost the realty prices within the belt. The city has already been coming out on top when compared to the performance of the other major real estate markets of Delhi, Mumbai or Bangalore. With this new development it could only increase further.
