The cabinet has granted in-principle approval for setting up a major port at Enayam near Colachel in Tamil Nadu. An SPV will be formed for the development of the port with an initial equity investment from the V.O Chidambaranar Port Trust, the Chennai Port Trust and Kamarajar Port Limited. The SPV will be responsible for developing port infrastructure including undertaking dredging and reclamation works, constructing the breakwater and ensuring connectivity links. The total estimated cost of the project is Rs 250 billion with Phase I entailing an investment of Rs 65.75 billion. Construction work on the project is expected to commence in July 2017 and the first container terminal is likely to be commissioned by July 2020. Enayam port will serve as a key gateway container port for Indian cargo and will reduce the logistics cost for exporters and importers.