After Delays, A Key Port Finally Heads For Overhaul

After a delay of three years, the Indian government is now fast-tracking the transformation of the Kandla Port, which will now become a global hub for shipbuilding, green cargo logistics, and aviation. 

As part of the initiative, the Tuna Port, located 15 km away from Kandla Port, will be developed to handle large ships and bulk cargo.

Located on the Gulf of Kutch, Kandla Port was set up in 1950, soon after independence. Since then, it has become a vital import export hub. Trade with West Asia, Europe, Asia, the US, Africa, and others takes place from here. 

Now known Deendayal Port, it is Gujarat’s largest centrally administered port. In FY 2025–26, it handled a record cargo volume of 160.11 million tonnes.

But this very traffic load has stretched the port to capacity. Noting this, the government decided to reduce the burden. 

On The Fast-Track 

The development of Tuna Port and the proposed greenfield airport near Kandla, both of which were in the pipeline for three years, will now be fast-tracked. This is expected to significantly strengthen the region’s logistics connectivity and support future port-led industrial growth.

Minister for Ports, Shipping and Waterways Sarbananda Sonowal this week approved the construction of a Road Over-Bridge (ROB) at LC-235 for Kandla Port at a cost of ₹132 crore. 

This project is part of the Indian government’s flagship ‘Sagarmala’ initiative for port-led growth and aligns with the objectives of the PM Gati Shakti National Master Plan, which aims to enhance multimodal connectivity and logistics efficiency across the country. 

Sonowal said, “This project reflects the central government’s commitment to modern, efficient, and seamless port-based connectivity. Once the ROB at Deendayal Port is completed, key bottlenecks will be removed, and cargo movement will improve significantly.”

Sushil Kumar Singh, Chairman of the Deendayal Port Authority, had earlier said, “Kandla Port is on the verge of major transformation. After achieving a record cargo volume of 160.11 million tonnes in FY 2025–26, it is now being developed into a world-class hub for shipbuilding, green cargo, and aviation.”

Green Hydrogen Plant

Larsen & Toubro (L&T) recently delivered India’s first indigenously manufactured electrolyser for a 1-MW green hydrogen plant at Kandla Port. The plan is to expand its capacity to 10 MW. 

Additionally, three new oil jetties with a total annual capacity of 10 million tonnes (MTPA) are in the pipeline. L&T’s wholly owned subsidiary L&T Energy GreenTech Limited (LTEGL) has signed a long-term partnership agreement with Japan’s ITOCHU Corporation.

“A new Shipbuilding Policy for the state is expected to be announced in May, which will further accelerate Kandla Port’s development,” a senior official from the Gujarat Maritime Board said.

“The policy will provide incentives such as interest rate subsidies on loans, electricity subsidies, and water subsidies to industries. The state government has already granted in-principle approval. The previous shipbuilding policy was introduced in 2010, but due to several unresolved issues, the new policy has been delayed by 16 years. Currently, Kandla Port operates under 11 policy frameworks.”

Greenfield Airport 

Land acquisition for a Greenfield Airport near Kandla Port has been underway for two years, covering about 1,000 acres. The airport project is estimated to cost around ₹3,000 crore. The Federation of Kutch Industries Association is actively supporting the initiative and coordinating with the Airports Authority of India.

Port At Tuna

As part of the restructuring of Kandla Port, the Tuna satellite port is being developed outside the Kandla Creek, utilizing a 6-km waterfront. This project involves an investment of ₹57,000 crore. The facility will have the capacity to build 32 ships annually and repair 50 ships per year. 

Under the PPP model, a mega cargo terminal along with a new multi-cargo terminal is also under consideration at Tuna Tekra.

Green Shipping Fuels

Gujarat’s Deendayal Port Authority Kandla Port has strengthened its methanol bunkering capabilities, marking an important step toward decarbonizing the maritime sector. 

In alignment with global net-zero targets by 2050, the initiative promotes the adoption of low-carbon fuels such as e-methanol and e-ammonia to reduce emissions.