Congress demands transparency on private stake in Great Nicobar port
Senior Congress leader Jairam Ramesh on Monday urged Union Ports, Shipping and Waterways Minister Sarbananda Sonowal to provide detailed information regarding private shareholding and the competitive bidding process for the International Container Transhipment Port (ICTP) at Galathea Bay under the Great Nicobar Project.
In a letter to Sonowal, Ramesh questioned the ownership structure of the proposed port and sought clarity on the bidding process for private participation. Sharing the letter on social media platform X, the Congress Rajya Sabha MP stated, “A transhipment port on Galathea Bay is at the heart of the Great Nicobar Island Project that will have devastating ecological impacts. Here is my letter to the Union Minister of Ports, Shipping and Waterways on the port that may well become part of the gigantic Modani empire.”
Ecological concerns raised over Great Nicobar Island Project
Ramesh said he was writing on behalf of the “very large number of people concerned with the ecological devastation” that could result from the Great Nicobar Island Project. The Centre has planned to develop the transhipment port at Galathea Bay to reduce dependence on foreign ports and position India as a regional maritime hub.
Referring to meetings of the Public Private Partnership Appraisal Committee (PPPAC) held on March 17 and March 19, Ramesh noted that the Ministry of Ports, Shipping and Waterways had secured approval for the development of the international container transhipment port at Galathea Bay.
Key risks identified by the ministry
Quoting the official record of discussions issued on April 2, Ramesh said the ministry had identified two key risks associated with the project: the development of a large-scale greenfield port and the challenge of diverting transhipment traffic from existing ports. “I take it that these competing well-established ports are Colombo, Singapore and Port Klang,” he wrote.
The Congress leader said it was noteworthy that while the ministry had acknowledged these challenges, it appeared convinced about the project's prospects despite concerns over the environmental impact of the port's construction and operation.
Questions on ownership and viability gap funding
Ramesh also sought clarification on provisions stating that at least 55 per cent shareholding in the project's special purpose vehicle would remain with an Indian-owned and controlled entity. He asked whether the provision effectively permits full private ownership, whether ownership of the six airport-like facilities planned under the broader Great Nicobar project would be diversified, and whether any Viability Gap Funding (VGF) or capital grant support would be provided from the ministry's budget.
The Congress leader further requested details on the timeline for floating tenders to invite private participation and the schedule for selecting the private co-owner and operator of the port.
