Large companies such as Adani Ports and Special Economic Zone, DP World, Jan De Nul, Vedanta Group, JM Baxi, and DBGT have expressed interest in the Rs 7,056 crore outer harbour project at Thoothukudi, following the re-tender issued in December 

The project’s Viability Gap Funding (VGF) has been increased to enhance its appeal, according to sources.

Officials from these major players attended a pre-bid meeting held last week.

The Request for Proposal (RFP) document stipulates that VGF will be capped at Rs 1,950 crore or the actual quoted amount, whichever is lower.

However, the Detailed Project Report (DPR) suggests government support for construction, including breakwater and dredging, amounting to Rs 2,500 crore.

The DPR highlights that the project is marginally viable on a standalone basis due to the significant investments required for civil works such as breakwaters, dredging, and reclamation, which do not generate direct revenues. 

International precedents show that private investors seldom fully finance such greenfield port projects, making substantial government support essential for financial viability.