The facility, to be built in Kochi in the south-western state of Kerala, would cost about US$500 million.

It would initially have a capacity of 2.5 million tonnes per annum, which would be doubled to 5 million tonnes a year in the "shortest possible time," Mathur told a press conference on Sunday, according to the United News of India press agency.

Construction work on the ancillary buildings and other facilities for the Kochi terminal would begin in November this year, he said.

Five bidders had been shortlisted for the terminal construction.

The bid package to the pre-qualified bidders would be issued in October this year. The pre-bid conference would be held in November and the work would be awarded in April next year.

The project was expected to be completed by September 2009, Mathur said.