Union Cabinet Expected To Greenlight Rs 76,220 Cr Vadhavan Port Project In Maharashtra
The Union Cabinet, chaired by Prime Minister Narendra Modi, is anticipated to approve a significant infrastructure project on 7 March. According to media reports, the Cabinet is set to clear a Rs 76,220 crore project aimed at establishing a new deep-water major port at Vadhavan near Dahanu in Maharashtra.
Reports say that the Cabinet meeting scheduled for 7 March is likely to endorse the Vadhavan Port project alongside several highway projects. The proposal for the creation of the Vadhavan Port is among ten major infrastructure projects awaiting Cabinet approval.
The Public Investment Board had earlier given its nod for the construction of a container terminal with an annual cargo handling capacity of 23 million twenty-foot equivalent units (TEUs) or 254 million tonnes. This recommendation has paved the way for the mega project's consideration by the Union Cabinet.
The port, to be managed by the Jawaharlal Nehru Port Trust (JNPT), is slated to be constructed in the environmentally sensitive Dahanu taluka in Maharashtra's Palghar district.
Port Development Details
The Vadhavan Port will be developed as a joint venture, with the Jawaharlal Nehru Port Authority (JNPA) holding a 74 per cent stake and the Maharashtra Maritime Board (MMB) owning the remaining 26 per cent.
The project will be executed in phases, with an initial handling capacity of 15 million TEU containers. Following the commissioning of its second phase, the port's capacity is projected to increase to 23.2 million TEUs.
According to Union Ports Minister Sarbanand Sonowal, the Special Purpose Vehicle (SPV) responsible for the project will invest approximately Rs 37,000 crore in establishing basic infrastructure. The remaining funding, around Rs 38,000 crore, is expected to come from private operators interested in operating the port.
In January 2024, APM Terminals signed an agreement with JNPA for the development of a new container terminal at the proposed Vadhavan port project. Similarly, DP World signed an MoU in October 2023 to express its willingness to participate in the port's development.
Environmental Clearance and Potential
The Ministry of Environment, Forest and Climate Change granted environmental and coastal regulation zone clearance for the project in February. Despite initial opposition, the project details were reworked to accommodate concerns raised by farmers, fishermen, and locals.
Situated along the Arabian coast north of Mumbai, Vadhavan Port offers strategic advantages with a natural draft of 20 metres. Its proximity to Mumbai and Gujarat, coupled with established connectivity to Northern and Central India, positions it as a key trade gateway for the region.
Union Ports Minister Sarbanand Sonowal highlighted the port's potential to drive industrial growth, generating employment opportunities for thousands. He underscored the government's commitment to leveraging water resources to reduce communication costs and foster industrial development in Maharashtra and other states through port-centric strategies.
