Government announces major projects to boost capacity at Kandla Port with Rs 57,000-crore investment

Government announces major projects to boost capacity at Kandla Port with Rs 57,000-crore investment

The Indian government on Tuesday (January 7) announced two major capacity expansion projects at Kandla Port with a combined investment of over ₹57,000 crore. The initiatives aim to boost India’s maritime capabilities under Prime Minister Narendra Modi’s “Make in India, Make for the World” vision.

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The first project involves a ₹30,000 crore Mega Shipbuilding Facility, which will manufacture Very Large Crude Carriers (VLCCs) with capacities of up to 3,20,000 DWT.

Spread across 8,000 acres, the facility will produce 32 new ships and repair 50 annually, featuring a marina, fishing harbour, and marine industrial cluster. The project is likely to unlock tremendous value for trade interests as well as employment avenues in the region, especially in the ancillary manufacturing and assembly units to come and operate in the cluster.

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Union Minister, Sarbananda Sonowal said, “We are really excited at the possibilities that this new investment is likely to bring towards contributing meaningfully towards Viksit Bharat. Under the dynamic leadership of Prime Minister Shri Narendra Modi ji, we are working towards building capacities in our country which will not only propel the growth proposition but also allow it to become a platform of production for the world at large.”

The second initiative is a ₹27,000 crore cargo terminal outside the Kandla Creek near Tuna, adding 135 MTPA to the port’s capacity. This new port will be developed using the 6-kilometre available waterfront. The new terminal will feature modern equipment and efficient evacuation systems to streamline dry bulk cargo handling.

Existing facilities at Kandla will be repurposed for liquid cargo, reducing vessel turnaround time and enhancing operational efficiency. Considering the new port’s proximity to the navigation channel, the dredging requirement will come down considerably, allowing bigger vessels to dock here.

Also Read: Adani Ports Q3 Update: Nearly 70% of FY25 cargo volume guidance achieved in first nine months

Speaking further, Sonowal said, “Ports are critical hubs for a nation’s economy, serving as vital links to support growth and drive economic development. Enhancing capacity in port infrastructure is essential to meet our expanding ambitions. The new facility at Kandla Port will not only significantly augment its operations but also enhance efficiency through the segregation of dry and liquid cargo.”

The Deendayal Port Authority (DPA) has also been working on a number of other projects in mission mode to enhance the capacity of Kandla Port significantly. A new mega cargo terminal, with a capacity of 2.19 million TEU, is being constructed at Tuna Tekra under PPP mode.

A new Multi Cargo Terminal at Tuna Tekra is also under consideration. This will add 18.33 MTPA to the existing capacity. Three new oil jetties are in the process of being constructed, which will further add 10 MTPA capacity.

One Single Buoy Mooring (SBM) and 2 product jetties are also being constructed at Vadinar. This will further shore up the liquid cargo handling capacity by 24.5 MTPA. A ship repair facility project at Vadinar is also under consideration which will be capable of servicing 32 vessels per year.

Also Read: India, Iran discuss development of Chabahar Port, trade relations

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