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The Karnataka government received eight bids for the privatisation of three cargo berths at Karwar and Old Mangalore Port under a Public Private Partnership model, reflecting strong investor confidence. Bidders include major firms like Chowgule Group, with projects to be awarded based on the highest royalty per tonne of cargo handled. A policy change allowing iron ore handling at ports, reversing a ban in place since 2010, is considered a key factor in participation. Bid evaluation is underway, supporting Karnataka's strategy to expand cargo capacity, promote coastal shipping, and strengthen port infrastructure.
The Karnataka government has reported a strong response from private companies for the privatisation of three cargo berths, with eight bids received earlier this month. Firms such as the Chowgule Group participated, showing increased confidence in the state's maritime infrastructure and policy environment. Advertisement
The berths, located at Karwar Port and at two points in Old Mangalore Port City Side and Bengre Side are being offered on a Renovate, Operate, Maintain and Transfer (ROMT) basis under the PPP framework. The projects will be awarded to bidders offering the highest royalty per tonne of cargo handled. The concession period for the two berths at Old Mangalore Port is set at 30 years, while the berth at Karwar Port will have a 15-year term.
Officials highlighted that this interest is partly driven by Karnataka Maritime Board's recent policy change permitting iron ore handling at state ports. This reverses the ban in place since 2010 and opens up significant cargo potential. The move has brought clarity for investors and is seen as a major step in improving port utilisation.
Earlier, Karnataka's port development under PPP has been limited. Notable projects include JSW Infrastructure Ltd's 30-year concession to develop a port at Keni village in Uttara Kannada district. The project, estimated at around INR 4,118.84 crore, aims to handle 30 million tonnes of cargo in its first phase, with potential expansion beyond 100 million tonnes.
Officials indicated that the high number of bids aligns with Karnataka's broader strategy to expand cargo handling capacity, promote coastal shipping, and unlock economic value from its port infrastructure. The bid evaluation is in progress, and successful award of the contracts is expected to enhance the ports role as key gateways for the state's trade, benefiting both domestic and export logistics.
The government also emphasized that the private sector's interest reflects confidence in Karnataka's regulatory environment, long-term port planning, and commitment to infrastructure growth. The completion of this tender could set a benchmark for future PPP initiatives in the state, potentially increasing competitiveness and efficiency in cargo handling.
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