Gujarat's Nargol Port Project Remains Stillborn After 30-Year Delay

This Gujarat government project has been stalled for the past 30 years. The state government issued tenders thrice to build Nargol Port, but intense local opposition has prevented even a single company from submitting a bid. 

Meanwhile, just 45 kilometres away from Nargol, a massive new port, Vadhvan, is being built in Maharashtra, but the Gujarat government or the administrative authorities seem unresponsive.

A small village in the Umargam taluka of Valsad district in South Gujarat, Nargol is located 140 km from Mumbai and 120 km from Surat, with a population of 25,000. In 1997, the BJP government under Keshubhai Patel first decided to build the Nargol port. 

At that time, Mumbai's Jawaharlal Nehru Port Terminal (JNPT), it was said, had reached full capacity, and its traffic would be diverted to Nargol, making it an alternative to JNPT. The Nargol port development was expected to boost Gujarat's economy, particularly in the Valsad district, by providing employment opportunities to millions there.

Most people in Nargol rely on fishing and agriculture for their livelihood. The land is highly fertile, and Nargol’s shallow coastline attracts a large number of fish for breeding. Popular fish varieties like king mackerel, prawns and shrimp, among others, are exported from here to the USA, UK, China, and Singapore by Mumbai traders. Besides fishing, the fertile land here supports the cultivation of rice, wheat, mangoes, chiku (sapodilla), and other fruits. 

Local Opposition To Nargol Port Proposal

When the government announced the new port, the villagers of Nargol opposed it saying the government had not consulted them. They said they feared the port would destroy the fishing industry and render their fertile land barren. Fish breeding would cease, and their livelihood would be jeopardised. 

The Nargol village panchayat passed a resolution opposing the government's plan to build the port. Villagers organised protests, faced police action including lathicharges and tear gas, and some locals died during the protest.

The villagers are worried that once the port is built, railway and road links will follow requiring vast amounts of land. Farmers fear the government will acquire their valuable, fertile land at low prices. 

The Adivasi population, heavily reliant on agriculture, would also be displaced and left without a livelihood. Due to the strong opposition, the government shelved the project. 

Fresh Tenders But No Bidder

In 2011-2012, efforts to revive the Nargol port project resumed. Former Chief Minister Vijay Rupani announced the development of the Nargol port during a visit to Valsad, stating Rs 4,000 crore would be invested, and the project would transform the entire region and create numerous jobs. He asserted that the government would not be swayed by protesters but would consider reasonable demands. Rupani mentioned that tenders had been issued and promised a grand port.

The Gujarat Maritime Board (GMB) was handed the responsibility to develop the port. It issued tenders worth Rs 3,800 crore, but no company expressed interest. Despite issuing tenders three more times and making various concessions and incentives to attract companies, no bids were submitted. In 2022 and, finally, in 2023, tenders were again issued, but like earlier, no bids came in. The government now plans to issue new tenders with more favourable terms for companies. 

The port will be built on a public-private partnership on Build-Operate-Transfer (BOT) model. The private company, which wins the tender, will bear the entire cost of development and will be awarded all revenue generated by the port for the first 30 years. In the next 20 years, the government will get a share in the profits, and after 50 years, the port will be handed over to the government. To attract companies, the BOT period has also been extended. 

Former Nargol sarpanch Yatin Bhandari said the coastline at Nargol is not deep enough for ships. The water depth is only about five metres and has a five-km rocky seabed. He wondered how ships would dock here. 

Accusing the government of deceiving villagers, Bhandari said the port could not be built without acquiring land for roads and railways to get cargo. He said the safety of villagers would be jeopardised and recalled the deaths of villagers in earlier protests. 

In response to inquiries, GMB Vice Chairman and CEO Rajkumar Beniwal, IAS, said no bids have come in for the Nargol port tender, and the status remains unchanged. Asked if new tenders would be issued in the future, Beniwal replied there were no immediate plans for now.

On the other hand, the Maharashtra government has initiated the construction of Vadhvan port, which is projected to cost more than Rs 75,000 crore. Vadhvan is 45 km from Mumbai's JNPT and has the JNPT as a land partner. Despite local opposition, Maharashtra has pushed ahead with the rapidly progressing project.