Assam and Gujarat have joined hands to develop a major clean-fuel project with the foundation stone laid for a 150-tonnes-per-day (TPD) e-methanol plant at Deendayal Port Authority (DPA) in Kandla, involving an estimated investment of Rs 2,300 crore.
The project is being jointly developed by Assam Petro-Chemicals Limited (APCL) and DPA. The foundation stone was laid by Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Himanta Biswa Sarma.
Under the partnership, DPA will provide port infrastructure, including storage facilities and pipeline connectivity, while APCL will establish and operate the e-methanol production facility within the port complex.
The project marks a significant expansion for APCL, taking the Assam government-owned company beyond its traditional Northeast India operations and into the emerging clean maritime-fuel market.
E-methanol, or electro-methanol, is produced using green hydrogen and captured carbon dioxide, with renewable electricity providing the energy required for production. The Kandla facility is expected to support green bunkering and provide lower-emission fuel for vessels operating on major international shipping routes.
The project’s location at Kandla, one of India’s key maritime gateways, is expected to provide access to international trade corridors and emerging demand for alternative marine fuels. The facility could potentially cater to shipping routes such as the Singapore-Rotterdam corridor as the global shipping industry explores alternatives to conventional fossil-fuel-based marine fuels.
The Kandla project follows an MoU signed between APCL and DPA in January 2026, when the proposed investment was estimated at more than Rs 1,200 crore. The latest project outlay of Rs 2,300 crore represents a substantial increase as the proposal moves towards implementation.
The project is also expected to generate more than 3,500 direct and indirect employment opportunities across engineering, technical services, transportation and associated supply chains.
The development is expected to strengthen cooperation between Assam and Gujarat while adding new clean-fuel production capacity to India’s maritime infrastructure.
