Essar Ports wins ₹2,276 crore Tuna Tekra cargo terminal at Kandla
Deendayal Port Authority has issued a Letter of Award to Essar Ports for a multipurpose cargo terminal in Gujarat under a PPP model.
The 30-second read
- Essar Ports got a Letter of Award from Deendayal Port Authority for a terminal at Tuna Tekra, Kandla.
- Project cost is ₹2,276.06 crore: ₹1,552.57 crore from Essar Ports and ₹723.49 crore from the port authority.
- The terminal will handle 18.33 million tonnes a year, with four berths and Cape-size vessels.
IllustrationDeendayal Port Authority (DPA) has given Essar Ports a Letter of Award for building a multipurpose cargo terminal at Tuna Tekra, Kandla, Gujarat. The project is under a public-private partnership. The news was first reported by The Hindu. The company won by submitting the top bid in a worldwide competitive tender, also first reported by The Hindu.
The total project cost is ₹2,276.06 crore. Essar Ports will invest ₹1,552.57 crore and DPA will invest ₹723.49 crore, as first reported by The Hindu. Mint first reported that the concession is a 30-year build-operate-transfer (BOT) deal. DPA will provide dredging of the access channel, berth pockets, turning circles and a common approach road.
The terminal will have a capacity of 18.33 million tonnes a year. It will have four berths of 300 m each, 1,200 m in total. It can take Cape-size vessels up to 170,000 DWT, with a draft up to 18 metres. It must follow environmental rules and the Green Port Policy.
Ashish Rajgarhia, Chief Executive Officer of Essar Ports, said: "The Tuna-Tekra project marks a defining moment for Essar Ports as we embark on a new journey to rebuild and expand our ports business. This project will serve as the foundation for our next phase of growth," He also said: "Through this investment, we reaffirm our commitment to building world-class maritime infrastructure," The Hindu named V. Srinivasan, Operating Partner-Infrastructure Vertical (Essar Group), and Sushil Kumar Singh, Chairman of DPA, in its report. Essar Ports has operational capacity of about 60 MTPA across Gujarat, Indonesia and the UK.
Why it matters
The project adds cargo capacity at Kandla, in line with India's growing trade and infrastructure needs. It also shows a private port operator and an Indian port authority sharing the investment.
The data
| Item | Detail |
|---|---|
| Total project cost | ₹2,276.06 crore |
| Essar Ports share | ₹1,552.57 crore |
| DPA share | ₹723.49 crore |
| Capacity | 18.33 million tonnes a year |
| Berths | Four of 300 m each, 1,200 m total |
| Vessel size | Up to 170,000 DWT, draft up to 18 metres |
