Vadhvan Port Project gets Mining License for Offshore Sand Reclamation

03 Mar 2025 CW Team

The reclamation process involves dredging 200 million cubic metres of sand from a designated offshore area located 60 km from the project site and 50 km off the coast of Daman. To support this initiative, the ministry has reserved 10,277.1 hectares (102.77 sq. km) for sand extraction. A detailed study conducted by IIT Madras, including borehole testing and sample analysis, confirmed the suitability of the sand for reclamation purposes.

The Jawaharlal Nehru Port Authority (JNPA) had submitted an application for the licence in October 2023. In response, the Ministry of Mines reserved the designated area for VPPL and issued a 10-year mining licence under the Offshore Area Mineral (Development & Regulations) Act 2006. The official letter of intent was handed over during a formal event attended by senior government officials and ministers.

The cost of procuring 200 million cubic metres of sand from land sources is estimated at Rs 120 billion, including Rs 14.40 billion in royalties to the Union government. However, by sourcing sand from offshore reserves, the project is expected to reduce costs by approximately Rs 60 billion. Offshore mining is also considered to have a lower environmental impact compared to land-based extraction, making it a more sustainable approach.

Vadhavan Port is poised to become India’s 13th major container port and the largest in terms of capacity. Developed under the landlord model, it will feature terminals constructed through Public-Private Partnerships (PPP). Approved by the Union Cabinet on June 19, 2024, the port will be built in two phases. Designed for seamless connectivity to key hinterlands, its all-weather deep-draft infrastructure is expected to strengthen India’s maritime economy under the Sagarmala initiative.

News source: The Print

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Vadhavan Port Project (VPPL) has secured a mining licence for offshore sand reclamation, marking a significant step towards the development of the greenfield port in Palghar district. The licence, issued by the Ministry of Mines, will facilitate the creation of 1,448 hectares of reclaimed land in the sea, a crucial requirement for the port’s construction. The reclamation process involves dredging 200 million cubic metres of sand from a designated offshore area located 60 km from the project site and 50 km off the coast of Daman. To support this initiative, the ministry has reserved 10,277.1 hectares (102.77 sq. km) for sand extraction. A detailed study conducted by IIT Madras, including borehole testing and sample analysis, confirmed the suitability of the sand for reclamation purposes. The Jawaharlal Nehru Port Authority (JNPA) had submitted an application for the licence in October 2023. In response, the Ministry of Mines reserved the designated area for VPPL and issued a 10-year mining licence under the Offshore Area Mineral (Development & Regulations) Act 2006. The official letter of intent was handed over during a formal event attended by senior government officials and ministers. The cost of procuring 200 million cubic metres of sand from land sources is estimated at Rs 120 billion, including Rs 14.40 billion in royalties to the Union government. However, by sourcing sand from offshore reserves, the project is expected to reduce costs by approximately Rs 60 billion. Offshore mining is also considered to have a lower environmental impact compared to land-based extraction, making it a more sustainable approach. Vadhavan Port is poised to become India’s 13th major container port and the largest in terms of capacity. Developed under the landlord model, it will feature terminals constructed through Public-Private Partnerships (PPP). Approved by the Union Cabinet on June 19, 2024, the port will be built in two phases. Designed for seamless connectivity to key hinterlands, its all-weather deep-draft infrastructure is expected to strengthen India’s maritime economy under the Sagarmala initiative. News source: The Print

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