With an investment of Rs 45,000 crore, Adani Ports and Special Economic Zone Ltd (APSEZ) has received key environmental and coastal regulation zone clearances from the Centre to double the capacity of its main port at Mundra to 514 million tonnes.
APSEZ’s case, under which it is seeking an extension from the Gujarat government in the concession period of the port, which is set to expire in 2031 after a 30-year term, could get strengthened with this permission.
Mundra Port, located in the Kutch district of Gujarat, is India’s largest commercial port. Currently, its design and environmentally friendly capacity can handle 225 million tonnes of cargo (9.5 million twenty-foot equivalent units) annually.
By 2024, it was India’s largest commercial port and top container port by volume with 179.6 million tonnes of cargo (7.4 million TEU).
APSEZ expects Mundra Port to handle over 200 million tonnes of cargo in FY25, becoming the first Indian port to reach this milestone. Mundra is fast approaching its full capacity, with 70 percent capacity utilization globally considered ideal for efficient port operations, reports Deccan Herald.
APSEZ requested the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change to expand the port’s capacity to 289 million tonnes as part of its waterfront development plan spread across 3,335 hectares. The expansion will cater to liquid, gas, multi-purpose, and cryogenic cargo.
“After examining the documents submitted by APSEZ and detailed deliberations held on May 15, 2024, the EAC recommended the proposal for environmental and CRZ clearance,” the committee meeting said. The recommendation is now expected to receive formal approval from the Ministry of Environment, Forest and Climate Change.
The expansion of Mundra is imperative to achieve the goal of making APSEZ the world’s largest transport utility and port operator by 2030.
APSEZ currently operates 15 ports and terminals on India’s coastline, with a total annual throughput of 627 million tonnes. It also runs Haifa Port in Israel, Dar es Salaam Port in Tanzania, and a container terminal in Colombo.
The original concession agreements given by the Gujarat government to private ports like Mundra two decades ago do not have an automatic extension clause. However, the state’s port policy formulated in 1997 allows for an opportunity for extension. The government will decide the terms for the extension of concessions for all ports on the expiry of the 30-year agreements in the next few years.
