Sonowal Announces Rs 570 Bn Investment to Boost Kandla Port Capacity
The Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, announced significant initiatives to enhance the capacity of Kandla Port, with an investment exceeding Rs 570 billion.
The two key announcements include the establishment of a new Mega Shipbuilding Project, with an investment of Rs 300 billion, and the development of a new cargo terminal outside Kandla Creek, valued at Rs 270 billion. This new terminal will add 135 MTPA to the port's existing capacity.
Sonowal stated that these capacity expansions are in line with Prime Minister Narendra Modi's vision of 'Make in India, Make for the World.'
According to the Ministry of Ports, Shipping and Waterways, the new Mega Shipbuilding Facility at Kandla Port aims to develop technical capabilities within the country to manufacture large Very Large Crude Carriers (VLCCs) or similar vessels, with a capacity of up to 3,20,000 tonnes DWT. The facility will be capable of producing 32 new ships and repairing 50 old ships annually. Spanning over 8,000 acres, the facility will feature components such as a marina, fishing harbour, townships, and a marine industrial cluster. The project is expected to unlock substantial value for trade and create numerous employment opportunities, particularly in ancillary manufacturing and assembly units within the cluster.
Sonowal emphasised that the new investment would contribute significantly towards building a 'Viksit Bharat,' under the dynamic leadership of Prime Minister Modi. He added that the new shipbuilding facility at Kandla is a realisation of Modi's 'Make In India, Make For the World' vision.
In addition, a new state-of-the-art port is being developed outside Kandla Creek, towards Tuna, as part of efforts to restructure the port. The new port will be built using a 6 km stretch of available waterfront, with an investment of Rs 270 billion, adding 135 MTPA to Kandla Port’s capacity. The port will handle dry bulk cargo with modern equipment and more efficient evacuation systems. This will enable the conversion of Kandla into Liquid Jetties, improving the handling of liquid cargo and significantly enhancing the turnaround time of liquid tanker vessels.
The proximity of the new port to the navigation channel will reduce dredging requirements, allowing larger vessels to dock.
Sonowal further noted that ports are essential hubs for the nation’s economy, serving as critical links that drive economic growth. He emphasized the importance of enhancing port infrastructure capacity to meet India’s expanding ambitions. Under Prime Minister Modi’s leadership, India is progressing towards becoming an Atmanirbhar Bharat by 2047. Sonowal stressed that ports play a pivotal role in this vision, and the ministry is committed to contributing toward its realisation.
The Deendayal Port Authority (DPA) is also working on several other initiatives to increase Kandla Port's capacity. A new mega cargo terminal at Tuna Tekra, with a capacity of 2.19 million TEU, is being constructed under a public-private partnership (PPP) mode. Additionally, a new Multi Cargo Terminal at Tuna Tekra is being considered, which will add 18.33 MTPA to the port’s existing capacity.
Furthermore, three new oil jetties are under construction, which will add 10 MTPA capacity, along with one Single Buoy Mooring (SBM) and two product jetties at Vadinar. This will further increase the liquid cargo handling capacity by 24.5 MTPA. A Ship Repair Facility at Vadinar is also under consideration, which will be capable of servicing 32 vessels annually.
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