The Public-Private-Partnership Appraisal Committee (PPPAC) has given the V O Chidambaranar Port Authority in Tamil Nadu permission to build a container terminal with a capacity of 4 million twenty-foot equivalent units (TEUs) in the port's outer harbor.

The second-largest port in Tamil Nadu is the V O Chidambaranar Port Authority (VOCPA), one of the twelve major ports in India. The Indian government designated the VOCPA as a significant port in July 1974.

The PPPAC is established for the appraisal of public-private partnership projects in the central sector to ensure speedy appraisal of projects, eliminate delays, and have uniformity in appraisal mechanisms.

The project, with an investment of Rs 7,055.95 crore, has also been granted “in-principle” approval for a viability gap funding (VGF) of Rs 1,950 crore by an empowered committee.

The empowered committee recommended-VGF is subject to final approval by Finance Minister Nirmala Sitharaman. This marks the second port project to receive VGF from the government, following the forthcoming Vizhinjam Port project.