Essar Ports Ltd has secured a Letter of Award (LoA) from Deendayal Port Authority (DPA) to develop an 18.33 million tonnes per annum (mtpa) multipurpose cargo terminal at Tuna Tekra in Kandla, Gujarat, at an estimated project cost of Rs 2,276.06 crore. The project marks a major step in the company’s efforts to expand its presence in India’s port infrastructure sector.
The terminal will be developed under a 30-year build-operate-transfer (BOT) concession through the public-private partnership (PPP) route. Essar Ports emerged as the highest bidder in a global competitive bidding process.
The total project cost comprises an investment of Rs 1,552.57 crore by Essar Ports and Rs 723.49 crore by DPA towards the terminal and supporting infrastructure.
The proposed facility will feature four berths, each measuring 300 metres, providing a total berth length of 1,200 metres. It will be designed to handle Cape-size vessels of up to 170,000 deadweight tonnes (DWT), with a draft capability of up to 18 metres.
DPA will develop common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road. The terminal will be developed and operated in accordance with applicable environmental requirements and the government’s Green Port Policy.
The additional cargo-handling capacity is expected to ease congestion at existing dry-cargo berths, improve operational efficiency and strengthen multimodal connectivity at Deendayal Port. The facility’s ability to accommodate larger vessels could also enhance shipping efficiency and help reduce logistics costs.
Essar Ports CEO Ashish Rajgarhia said the Tuna Tekra project marked a defining moment for the company as it rebuilds and expands its ports business. The investment will form the foundation for its next phase of growth, he added.
The company has previously developed and operated 168 mtpa of port capacity across India, of which 148 mtpa was monetised through strategic transactions. Its current portfolio comprises approximately 60 mtpa of operational capacity across India, Indonesia and the United Kingdom.
Srinivasan, operating partner–infrastructure at Essar Group, said the company would build on its established expertise in port infrastructure while pursuing opportunities aligned with India’s growing trade and infrastructure requirements.
The Tuna Tekra project also builds on the foundation stone laid by Prime Minister Narendra Modi. The investment is expected to support the expansion of maritime infrastructure in line with India’s long-term development vision under Viksit Bharat 2047.
Essar Group, which operates across energy, infrastructure, metals and mining, technology and retail, brings more than five decades of experience in developing and operating infrastructure assets. Through the Tuna Tekra terminal, Essar Ports aims to strengthen its position in the port sector and expand its participation in India’s growing cargo and logistics market.
