Union Cabinet Approves Rs 76,000-Crore All-Weather Vadhavan Port in Maharashtra

The Union Cabinet under Narendra Modi‘s third term has approved the construction of the Rs 76,000-crore Vadhavan Port project in Maharashtra. This significant decision marks a major step towards enhancing economic progress and creating substantial employment opportunities. The Vadhavan Port is expected to function as a crucial gateway port for the India-Middle East-Europe Corridor (IMEC) and the International North-South Transportation Corridor (INSTC).

The port will be built by Vadhavan Port Project Ltd. (VPPL), a special purpose vehicle jointly owned by the Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB). The project envisions the development of an all-weather greenfield deep draft major port that will be a game-changer in the maritime infrastructure of India.

With an estimated cost of over Rs 76,000 crore, the Vadhavan Port project will involve the establishment of core infrastructure, various terminals, and commercial infrastructure under a public-private partnership (PPP) model. Additionally, the Cabinet has greenlighted the creation of road connectivity to the port from national highways by the Ministry of Road Transport & Highways and rail linkage to the existing rail network and the upcoming Dedicated Rail Freight Corridor by the Ministry of Railways.

The project aims to drive investments, trade growth, and technological advancements, positioning Vadhavan Port as one of the top 10 ports globally. As part of the project’s proposal, the government will contribute Rs 38,000 crore, while an equivalent sum is expected from private sector entities vying for the nine terminal contracts.

Prior to this approval, the Vadhavan Port project had faced challenges, including environmental concerns that led to protests from local communities. The government has emphasized plans to address these concerns to ensure sustainable development in the region. Notably, the project had previously received in-principle approval from the Union Cabinet in 2020 but faced delays.

In a parallel initiative, the Union Cabinet has also sanctioned a fund of Rs 7,453 crore for kickstarting the country’s inaugural offshore wind power projects. This move underscores the government’s commitment to renewable energy and sustainable development practices. The offshore wind power projects are anticipated to contribute significantly to India’s clean energy goals and reduce dependency on fossil fuels.