Vadhavan Port will be a Game Changer for India

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In a significant move aimed at bolstering infrastructure and renewable energy sectors, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved two key projects: the Vadhavan Port project in Maharashtra and a viability gap funding (VGF) scheme for offshore wind energy projects. After the completion of both phases by 2034, Vadhavan Port will be among the world’s top 10 ports.

Vadhavan Port Project

Vadhavan Port	Details
Location	Maharashtra, near Vadhavan
Total Cost	Rs 76,220 crore
Purpose	Gateway port for India-Middle East-Europe Corridor (IMEC) and International North-South Transportation Corridor (INSTC)
Ownership	Vadhavan Port Project Limited (VPPL), JV between JNPA (74%) and MMB (26%)
Type	Greenfield deep draft major port
Infrastructure	Terminals, core infrastructure, commercial facilities under PPP model
Connectivity	Road and rail projects linking to national highways and Dedicated Rail Freight Corridor
Environmental Impact	Measures to mitigate environmental concerns and address local community issues
Economic Impact	Significant employment generation, boost to regional and national economy

Vadhavan Port Project : Offshore Wind Energy Projects

Viability Gap Funding (VGF) Scheme

Amount: The Cabinet approved a VGF scheme totaling Rs 7,453 crore for offshore wind energy projects.
Objective: This initiative aims to kickstart the development of India’s first set of offshore wind power projects.
Details:
- Rs 6,853 crore will support the installation and commissioning of 1 gigawatt (GW) of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu).
- Rs 600 crore is allocated for upgrading two ports to meet logistics requirements for offshore wind energy projects.
Implementation: Private developers will be selected through a transparent bidding process to establish these projects, while Power Grid Corporation of India Ltd will construct the necessary power evacuation infrastructure, including offshore substations.

Impact Of Vadhavan Port Project

Cost Reduction: VGF support aims to make offshore wind power economically viable for purchase by power distribution utilities, thereby reducing the overall cost of renewable energy.
Environmental Sustainability: Offshore wind projects contribute to India’s renewable energy targets while leveraging coastal resources.
Infrastructure Development: The initiative will also enhance port infrastructure, facilitating future offshore wind energy expansions.

India’s Port Sector

India is the 16th largest maritime country in the world.
The Indian maritime sector contributes to 95% of India’s trade by volume and 70% by value.
Major Port: Controlled by the Ministry of Ports, Shipping & Waterways controls major ports in India.
Minor Port: Controlled by State Maritime Boards/Governments. There are 200 non-major ports.
There are 12 Major Ports in India: Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V. O. Chidambaranar (Tuticorin),Visakhapatnam and Kamarajar Port Limited.
- 13th -Vadhavn Port (under construction).
India owns over 30% global market share in the ship breaking industry and is home to the largest ship-breaking facility in the world at Alang (Gujarat).

Vadhavan Port Project UPSC

These approvals underscore the government’s commitment to infrastructure development and renewable energy expansion. The Vadhavan Port project and the offshore wind energy initiative are poised to not only strengthen India’s logistics and energy sectors but also pave the way for sustainable economic growth and technological advancement in the years ahead. The emphasis on PPP models and strategic investments reflects a broader vision for inclusive and resilient national development.

Vadhavan Port FAQs

Where is Wadhwan port?

The Proposed Port is located at Vadhvan point near Dahanu in the District of Palghar, Maharashtra.

What is the depth of Vadhavan Port?

Vadahavan port with 20-metre natural depth will have the capacity to handle 23.3 million TEU (twenty-foot equivalent unit), a measure of volume in units of twenty-foot-long containers. It will emerge as one of the 10 biggest ports in the world and will create up to 12 lakh jobs.