The union cabinet Thursday approved a shipping ministry proposal to set up new major ports in West Bengal and Andhra Pradesh.
The Cabinet Committee on Economic Affairs (CCEA), which met here in the evening, decided to set up a major port at Sagar Island in West Bengal through the Public Private Partnership (PPP) mode and another new port at Dugarajapatnam in Andhra Pradesh.
An official release said the existing port facilities at Kolkata and Haldia are riverine ports and are facing severe draught limitations, because of the adverse morphological changes in Hooghly River which results in regular siltation.
The deep draught port at Sagar Island would obviate the need for heavy maintenance dredging and would be able to handle large-sized vessels.
It said the rapid industrial growth in the hinterland of Visakhapatnam Port has rendered it necessary to have another major port in Andhra Pradesh. The new major port will facilitate the economic development of the state.