- Vadhvan Port to Handle 23 Million TEUs, Among World’s Top 10.
- Debt to Be Raised in Two Phases from Domestic and Global Lenders.
- Total Project Cost Pegged at ₹78,057 Crore, Backed by JNPA and MMB.
India has officially kicked off the process of raising ₹30,000 crore, which is about $3.5 billion, to finance the construction of Vadhvan Port, poised to become the largest port in the country. Located just a few hours north of Mumbai, this project marks a significant advancement in bolstering India’s maritime infrastructure, reports Marine Insight.
Joint Ownership and Project Oversight
The Vadhvan Port Project is being carried out by Vadhvan Port Project Ltd., a collaboration between the Jawaharlal Nehru Port Authority (JNPA) and the Maharashtra Maritime Board (MMB). JNPA holds a 74 per cent share in this venture, while MMB owns the remaining 26 per cent, showcasing a robust partnership in the public sector.
Phased Debt Plan and Repayment Timeline
As per Unmesh Sharad Wagh, the chairman of JNPA and managing director of the project, the debt will be raised in two phases. The repayment terms for the loans will span between 15 and 20 years. Funding will come from both domestic and international lenders, highlighting the project’s scale and the global interest it has generated.
Estimated Cost and Global Standing
The total estimated cost for the Vadhvan Port Project is pegged at ₹78,057 crore, or around $9 billion. Prime Minister Narendra Modi laid the foundation stone for the port last year. Once completed, Vadhvan Port is expected to handle about 23 million twenty-foot equivalent units (TEUs) each year, positioning it among the top ten container ports in the world.
Financial Planning and Equity Investment
IDBI Capital has been selected as the financial advisor for the initial phase of fundraising. The goal is to secure ₹22,000 crore, roughly $2.54 billion, in long-term loans over the next five years. The request for proposals (RFPs) for this phase will be released between October and December of this year. Alongside the debt, the project promoters—JNPA and MMB- will jointly invest ₹13,000 crore, or about $1.5 billion, in equity funding to facilitate the port’s development.
Land Development and Institutional Engagement
The project is already off to a strong start, with land reclamation efforts underway on 1,200 hectares to set the stage for the port’s infrastructure. The company is also actively engaging with multilateral financial institutions to explore additional support and funding opportunities.
Strategic Depth and Connectivity
One of the standout features of Vadhvan Port is its impressive natural sea depth of 20 meters. This depth allows it to welcome some of the largest container ships in the world—vessels that currently avoid Indian ports due to shallower waters.
Role in the India-Middle East-Europe Corridor
On top of its domestic benefits, Vadhvan Port is poised to play a crucial role in the India-Middle East-Europe Corridor. This new trade route aims to connect Asia with Europe via the Gulf region, providing a quicker and more secure alternative to the usual shipping lanes.
Government Support and National Priority
The Indian government has recognised maritime development as a national priority. In the Union Budget presented in February, they proposed establishing a Maritime Development Fund. This fund is designed to offer financial support, whether through equity or debt, to help kickstart large-scale infrastructure projects like Vadhvan Port.
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Source: Marine Insight
