India approves offshore container terminal
India's Cabinet approved the development of an offshore container terminal at Mumbai Port as trade expands in line with growth in Asia's third-biggest economy after Japan and China.
The terminal will be built by a group of companies consisting of Gammon India, Gammon Infrastructure and Dragados of Spain, the government said in a release in New Delhi.
India is bolstering port capacity as economic growth boosts the import of oil and the export of textiles.
The shipping ministry said in December 2005 it expects to spend Rs1 trillion ($25 billion) in six years to improve maritime facilities.
The South Asian nation's economy has expanded at an average 8.6 per cent since 2003, the second-fastest pace among major economies after China.
India's exports of gems, textiles and other manufactured products rose at the fastest pace in five months in September, the government said November 1.
Mumbai Port Trust, which will provide the supporting infrastructure for the project, will spend Rs3.66 billion ($93 million) on the project, which will cost a total of Rs12.28 billion, the government said.
The remaining Rs8.62 billion will be invested by the non-state partners.
The project will add capacity of 9.6 million tonnes per annum and will be constructed in three years, Finance Minister Palaniappan Chidambaram told reporters after the Cabinet meeting that approved the plan. ( Gulf )