The West Bengal Cabinet on Monday decided to give industrialist Gautam Adani a contract to build a deep sea port at Tajpur in Purba Medinipur district at an investment of Rs 25,000 crore, The Telegraph reported.

Adani Ports and Special Economic Zone had emerged as the highest bidder for the proposal in an open auction conducted by the Mamata Banerjee government in March. However, the state government could not go ahead with the subsequent steps in awarding the project because of legal problems, according to the newspaper.

On Monday, the Cabinet announced that it has approved the proposal for issuing a letter of intent to the Ahmedabad-based conglomerate.

Under the project, the state government plans to connect the industrial and economic corridor between Raghunathpur in Purulia district and Dankuni in Hooghly. When developed, Tajpur would be Bengal’s only greenfield port in half a century since the Haldia Dock Complex was set up in the 1960s.

According to a statement issued by the Cabinet, the port will provide quick access to international markets for industries in the state. “All the eastern States and the North East India will be benefited from the dramatically improved connectivity through highways and integrated inland waterways,” the statement noted.

West Bengal Urban Development Minister Firhad Hakim told reporters that the project will create direct employment opportunities for 25,000 people and usher in a new era of development in the state.

In December, Adani had met Chief Minister Mamata Banerjee to discuss investment opportunities in the state.

At the Bengal Global Business Summit held in April, the Adani Group had announced that it will invest Rs 10,000 crore in the state over a decade to develop port infrastructure, data centres, undersea cables, centres of excellence in digital innovation, fulfilment facilities, warehouses and logistics parks.