Gandhinagar: The Government of Gujarat has given approval to world’s first CNG terminal at Bhavnagar port, said a note issued by Chief Minister’s office.

U.K. based Foresight group and Mumbai based Padmanabh Mafatlal group joint venture will invest Rs. 1900 crre to set up a CNG port terminal at Bhavnagar port, the note further said addinh that the Chief Minister has as a Chairman of Gujarat Infrastructure Development Board (GIDB) has given approval to this proposal.

Proposed GNG terminal will have annual 1.5 mt capacity. MoU between Gujarat government arm Gujarat Maritime Board and London based Foresight Group was signed during 2019 edition of Vibrant Gujarat summit. It’s worth noting that Bhavnagar port is operated by Gujarat Maritime Board. Bhavnagar port witnesses annual traffic of 3 mt cargo.

A new CNG terminal will come up on the northern side of existing port. Several changes like channel for port basin, two lock gates, infrastructure for CNG will be developed. In addition to this, there’s also a plan to develop a ro-ro terminal, liquid terminal and container terminal at Bhavnagar port in future. Once the terminal is set up, annual cargo capacity of Bhavnagar port will reach 9 mt, of which 6 million will be on account of Foresight-PM Group JV.

Foresight-PM Group consortium will invest Rs. 1300 crore in first phase and Rs. 600 crore in second phase through Swiss challenge route.

Formal detail concession agreement will be inked soon as per the State government’s BOOT policy and Swiss challenge process between GMB and the company.

Foresight-PM JV has completed pre – feasibility project report, site selection study, gas supply agreement and CNG vessel development study.

The project will see Rs. 500 crore foreign investment.

The port is connected through broad gauge railway and national highway.