Adani Ports, MEIL and Vishwa Samudra Bid for ₹11,733-Crore VOC Port Outer Harbour Project

Adani Ports and Special Economic Zone Ltd, Megha Engineering and Infrastructure Ltd (MEIL), and Vishwa Samudra Engineering Pvt Ltd are competing to secure the ₹11,733-crore Outer Harbour infrastructure project at V O Chidambaranar (VOC) Port in Thoothukudi.

Sources within the V O Chidambaranar Port Authority (VOCPA) confirmed that the three entities are in the race for the project, which is set to be executed under the Hybrid Annuity Model (HAM). The initiative forms a key component of the broader ₹17,167-crore Outer Harbour development plan designed to expand maritime infrastructure and strengthen Thoothukudi's long-term position in India’s international trade and connectivity network.

The overall development plan comprises two primary components. The harbour infrastructure development is estimated to cost ₹11,733 crore, while a separate container terminal will be developed in two phases at an estimated cost of ₹5,434 crore. According to the port authority, the container terminal will be implemented under the Design, Build, Finance, Operate, and Transfer (DBFOT) model.

The Cabinet Committee on Economic Affairs (CCEA) recently approved the project, paving the way for the creation of major new harbour infrastructure and additional container-handling capacity at the port.

In December, VOCPA floated the tender for the Outer Harbour Development Project for the third time, making a strategic shift to the Hybrid Annuity Model in an effort to attract greater private-sector participation. The project was originally envisaged under the Design-Build-Finance-Operate-Transfer model.

However, the port authority subsequently opted for HAM—a financing and execution framework widely adopted in the road infrastructure sector—to improve the project’s commercial attractiveness to private developers.

Under the HAM framework, the government contributes 40 per cent of the project cost during the construction phase, while the private developer finances the remaining 60 per cent. This model combines elements of Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) frameworks, effectively distributing financial and execution risks between the public authority and the private concessionaire.

This funding arrangement is intended to reduce the upfront financial burden on the private developer while ensuring ongoing public-sector participation in infrastructure funding, thereby facilitating smoother project implementation and long-term operational sustainability.

"The adoption of the Hybrid Annuity Model for large-scale maritime infrastructure projects reflects a pragmatic shift in risk-sharing between the public and private sectors. By absorbing 40 percent of the construction cost, the government reduces upfront capital pressure on developers, which is crucial for attracting credible bidders for high-value projects like the VOC Port expansion." — Dr. Shishir Gupta, Founder & CEO, StartupLanes