Vadhvan Port construction to begin soon with ₹13,000 crore investment.

The Jawaharlal Nehru Port Authority (JNPA), in collaboration with the Maharashtra Maritime Board (MMB), is set to invest ₹13,000 crore to initiate Phase-1 of the Vadhvan port construction in Maharashtra. Unmesh Wagh, the chairman of JNPA, disclosed this development in an exclusive interview with BusinessLine.

Wagh revealed that the Power Finance Corporation has sanctioned a ₹22,000 crore loan for the port, with the total project cost estimated at ₹76,220 crore. Of this amount, ₹50,000 crore will be needed for the first phase. The remaining funds will be sourced either through loans or the Public-Private Partnership (PPP) model.

"The construction of the ₹76,220 crore Vadhvan port in Maharashtra is expected to commence immediately after this monsoon," Wagh stated. "We will start with road construction post-monsoon, and by next year, we will begin reclaiming 1,448 hectares of land from the sea for the port."

For Phase-1, JNPA and MMB will invest ₹13,000 crore as equity. JNPA has secured ₹9,000 crore, and the Maharashtra government has promised budgetary support. The rest of the funds will be obtained through loans or PPP. Vadhvan Port Project Ltd, a special purpose vehicle formed by JNPA and MMB, will oversee the project, with JNPA holding a 74% stake and MMB holding 26%.

Once completed, the Vadhvan port will have the capacity to handle 24 million TEUs, placing it among the top 10 ports globally. The port, constructed six kilometers offshore by reclaiming land, will feature a 10-kilometer breakwater and nine terminals, including four in Phase 1. Each terminal will have three berths, each one kilometer in length, along with four multipurpose berths, one RoRO, one for the Coast Guard, and four liquid berths.

"Finance is not an issue for the port construction," Wagh emphasized. "Although the Power Finance Corporation sanctioned a ₹22,000 crore loan within three days of cabinet approval on June 19, 2024, we are still exploring using internal resources for the project."

The port construction will not require land acquisition as the land will be reclaimed from the sea. However, 571 acres will be needed for building over 32 kilometers of roads, which will be sourced by the National Highway Authority of India.

Wagh also noted that the capacity of three major container handling ports on the west coast is expected to be fully utilized by 2029, with future capacity expected to come from Vadhvan.

HBL