Adani Secures ₹45,000 Cr Green Light for Massive Mundra Port Expansion

Mumbai: Gautam Adani’s Adani Ports & Special Economic Zone Ltd (APSEZ) has secured important environmental and coastal regulation zone approvals from the Centre. This will allow the company to more than double the capacity of its flagship Mundra port to 514 million tonnes with an investment of ₹45,000 crore.

Potential Extension for Port Lease

This expansion could strengthen APSEZ’s case for extending the port’s concession period beyond its end date in 2031. Mundra port currently operates under a 30-year lease from the Gujarat government.

Current Capacity and Performance

Located in Gujarat’s Kutch district, Mundra port is India’s largest commercial port and the top container port by volume. It currently has approval to handle 225 million tonnes of cargo annually, including 9.5 million twenty-foot equivalent units (TEUs) for containers. In fiscal 2024, the port managed 179.6 million tonnes of cargo, including 7.4 million TEUs. This represents over a quarter of India’s total cargo volume and more than a third of its container cargo.

Expected Growth

APSEZ expects Mundra port to handle over 200 million tonnes of cargo in fiscal 2025, making it the first port in India to reach this milestone. The port has been growing at double-digit rates and is on track to reach its full rated capacity soon.

Ideal Capacity Utilisation

Globally, a capacity utilisation of 70% is considered ideal for efficient port operations, preventing congestion and maintaining productivity. As Mundra approaches its full capacity, this expansion is aimed at keeping operations smooth and efficient.

Expansion Details

APSEZ had applied to the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change to increase the port’s capacity by 289 million tonnes, bringing it to a total of 514 million tonnes. This expansion is part of the Waterfront Development Plan, covering 3,335 hectares at Mundra port. The new capacity will accommodate multi-purpose, liquid, gas, and cryogenic cargo.

Approval Process

The EAC examined APSEZ’s proposal and, after detailed discussions on 15 May 2024, recommended the project for environmental and coastal regulation zone clearance. This recommendation now awaits final approval from the Ministry, which is expected to be a formality.

APSEZ’s Future Plans

Mundra’s expansion is crucial for APSEZ’s goal to become the world’s largest transport utility and port operator by 2030. APSEZ currently operates 15 ports and terminals along India’s coastline, handling about 627 million tonnes of cargo annually. Additionally, it manages the Haifa Port in Israel, a container terminal at Dar es Salaam Port in Tanzania, and is developing a terminal at Colombo port.

APSEZ did not respond to requests for comments on the expansion by the time of publication.