The Vadhavan Port Project in Maharashtra is developing a deep-draft greenfield port on 1,448 hectares of reclaimed land. The project will fill 200 million cubic meters of sand, which was deemed suitable for reclamation. The Ministry of Mines granted a mining license for ten years in February 2025.
The estimated cost of extracting sand from land is Rs 120 billion, but using sea sand has resulted in cost savings of Rs 60 billion. Vadhvan Port Project Limited (VPPL) is advancing the development of the Vadhvan Port, a deep-draft greenfield port located in the Palghar district of Maharashtra, India. This strategic initiative aims to bolster India’s maritime infrastructure and enhance its cargo handling capabilities.
Project Overview
The Vadhvan Port is being developed as an all-weather, deep-draft major port designed to accommodate large vessels, including Ultra Large Container Ships (ULCS). The port will feature an artificial harbor protected by breakwaters, with berths and inner.
Navigational channels designed to handle various types of cargo, including containers, liquid bulk, roll-on/roll-off (ro-ro), and multipurpose cargo. The natural depth of approximately 20 meters near Vadhvan Point facilitates the accommodation of large ships without extensive dredging.
Project Implementation and Partnerships
VPPL, a Special Purpose Vehicle (SPV), is spearheading the project’s development. This SPV is a joint venture between the Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB), holding equity shares of 74% and 26%, respectively. The total estimated project cost, including land acquisition, is ₹76,220 crore.
In December 2024, JNPA signed a Memorandum of Understanding (MoU) with Terminal Investment Limited Sàrl (TIL) to collaborate on the construction of the Vadhvan Port, reflecting a commitment to enhancing India’s port infrastructure.
Recent Developments
- Mining License for Offshore Sand Reclamation: In February 2025, VPPL secured a mining license from the Ministry of Mines for offshore sand reclamation. This license permits the reclamation of approximately 1,448 hectares of land from the sea, a critical step for the port’s construction.
- Engineering, Procurement, and Construction (EPC) Contract: In January 2025, VPPL awarded the EPC contract for near-shore reclamation and shore protection to ITD Cementation India Ltd. This contract encompasses essential preparatory work for the port’s development.
- Land Reclamation Strategy: The VPPL board approved modifications to the Hybrid Annuity Model (HAM) to attract a broader range of bidders for the project. The plan includes reclaiming approximately 1,200 hectares of land in two sections, optimizing the land reclamation process.
Economic and Social Impact
The Vadhvan Port is poised to serve as a catalyst for economic growth in Maharashtra and India. By enhancing maritime trade capabilities, the port is expected to attract significant investment and create employment opportunities.
Maharashtra Minister Nitesh Rane has emphasized prioritizing job opportunities for local residents, particularly fishing communities, through specialized training programs. This approach aims to empower local populations and ensure inclusive development.
Future Outlook
With key approvals and contracts in place, VPPL is progressing towards the construction phase of the Vadhvan Port. The project’s advancement aligns with India’s broader strategy to modernize its port infrastructure, enhance trade efficiency, and stimulate regional economic development. As the project moves forward, continued collaboration among stakeholders will be crucial to its successful realization.
In summary, VPPL’s initiatives in advancing the Vadhvan Port project underscore a significant commitment to strengthening India’s maritime infrastructure, with anticipated benefits for both the local community and the national economy.
Group Media Publication
Construction, Infrastructure and Mining
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