The National Telecom of India Ltd (Natelco) and Unocol Bharat Ltd (Indian arm of the US-based oil and gas major) had signed an MoU in late 1998 to jointly develop the main port to handle 8 million tonnes per annum (mtpa) of general cargo and import 2.5 mtpa of the fuel at the adjoining LNG Terminal by FY 2004. Unocol withdrew from the second part of the project, informing its other consortium partner Natelco about the decision on March 14.

When contacted, sources in the Maroli Project said: "The Natelco-Unocol MoU was only for developing the LNG Terminal after the main harbour is built. However, the terminals for both the general cargo and LNG were to be ready by 2004."

Sources said: "The contribution of Unocol in terms of sharing technical or financial input so far had been minimal. The parting of ways should help the Natelco push its general cargo terminals as stand-alone project faster."As such, the project has been lingering for more than a year due to a relentless struggle launched by Kinara Bachao Samiti.

These groups main contention was that in case a major port is developed at Maroli, it would uproot the fishermen operating from a number of small fishing ports along the coast of Valsad district. As per the state's Port Policy annouced in 1995, the state-owned Gujarat Maritime Board (GMB) is expected to conduct preliminary studies for developing 10 greenfield sites as major ports, six in the private sector and four in joint, along the 1,600 km long coastline. Out of the six, the state government had offered Maroli, besides five other sites, to private developers.

While the port-led BOOT policy was announced in July 1997, expressions of interest (EoI) were invited in September 1997 on competitive tendering basis. Maroli was awarded as a priority project for the purpose of Linkage Provision.