Cabinet approves development of Rs 76k crore all-weather port in Maharashtra's Vadhavan

Union minister Ashwini Vaishnaw during the cabinet briefing on Wednesday.

The Union Cabinet on June 19 approved the development of an all-weather deep-water port at Vadhavan near Dahanu in Maharashtra.

"In Maharashtra's Dahanu of Palghar district, a project of Rs 76,200 crore has been approved for Vadhavan Port. The project will create a cumulative capacity of 298 million metric tons (MMT) per annum, including around 23.2 million TEUs (Twenty-foot equivalents) of container handling capacity," Information & Broadcasting Minister Ashwini Vaishnaw said during the Cabinet briefing.

On June 18, Moneycontrol had reported that the Cabinet Committee on Economic Affairs (CCEA) is expected to take up the proposal to develop a new deep-water major port at Vadhavan.

Upon completion, the Vadhavan port will be one of the top 10 ports in the world. The capacities created will also aid EXIM trade flow through IMEEC (India Middle East Europe Economic Corridor) and INSTC (International North South Transportation Corridor).

The port, to be helmed by Jawaharlal Nehru Port Trust (JNPT), would come up in the eco-sensitive Dahanu taluka in Maharashtra’s Palghar district, around 150 km from Mumbai.

Vadhavan will be constructed by a joint venture in which Jawaharlal Nehru Port Authority (JNPA) will have a 74 percent stake and Maharashtra Maritime Board will hold 26 percent.

To be built in phases, the port will handle 15 million TEU containers in the first phase and 23.2 million TEUs after the commissioning of its second phase.

The port will comprise nine container terminals, each 1000 meters long, four multipurpose berths, including the coastal berth, four liquid cargo berths, a Ro-Ro berth, and a Coast Guard berth.

The project, aligned with the objectives of PM Gati Shakti programme, will add to further economic activity and also have the potential for direct and indirect employment opportunities for around 10 lakh individuals, thereby contributing to the local economy.

The Union Cabinet also approved establishing the road connectivity between the Port and National Highways by Ministry of Road Transport & Highways and rail linkage to the existing rail network and the upcoming Dedicated Rail Freight Corridor by Ministry of Railways.

In March 2024, Shiv Sena (UBT) chief Uddhav Thackeray had vowed to scrap the Vadhavan port project citing opposition by the local fishermen.