Galathea Bay transhipment port recommended in principle at ₹48,862 crore with ₹12,230 crore of viability gap funding
16 October 2026
The proposed International Container Transhipment Port at Galathea Bay on Great Nicobar Island has received an in-principle recommendation from the Public Private Partnership Appraisal Committee, which sent it to the competent authority for consideration.
The total project cost is Rs 48,862 crore.
Viability Gap Funding of Rs 12,230 crore, which is 25 per cent of the project cost, was sought from the Ministry of Ports, Shipping and Waterways.
The equity is to be split 55 per cent with an Indian-owned and controlled private entity and 45 per cent with select major ports, including Kamarajar Port Limited.
Several government wings questioned the project's commercial viability and how it would compete with Colombo, Singapore and Port Klang, and the Department of Expenditure flagged the relaxations sought by the ministry.
The ministry's case is that the site is close to the main East-West shipping route and nearer than Port Klang and Singapore, which could cut logistics costs for mother and feeder vessels.
In plain words
VGF Viability Gap Funding — A government grant that makes an otherwise unviable infrastructure project bankable.
PPPAC Public Private Partnership Appraisal Committee — The central committee that appraises public private partnership projects before approval.