Vadhvan Port Project Secures Mining Licence for Essential Offshore Sand Reclamation

Vadhavan Port Project Ltd (VPPL) announced it has secured a mining licence for offshore sand reclamation. This development is crucial for establishing a new port in Palghar district. The licence, granted by the Ministry of Mines, allows for the creation of 1,448 hectares of reclaimed land at sea, essential for the port's construction.

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The reclamation process involves dredging 200 million cubic metres of sand from a designated area. This area is located 60 km from the project site and 50 km off Daman's coast. The Ministry of Mines has allocated 10,277.1 hectares (102.77 sq. km) for this purpose.

Offshore Sand Reclamation and Cost Efficiency

A study by IIT Madras confirmed the suitability of the sand for reclamation after conducting borehole testing and sample analysis. Offshore mining is expected to save around Rs 6,000 crore compared to sourcing sand from land, which would cost Rs 12,000 crore including Rs 1,440 crore in royalties to the Union government.

The letter of intent was presented by Union Minister of Mines & Coal G Kishan Reddy to VPPL CMD and JNPA Chairman Unmesh Sharad Wagh. Maharashtra Chief Minister Devendra Fadnavis, mines secretary Kanta Rao, and Maharashtra's mines minister Shambhuraj Desai were also present at the event.

Strategic Development and Environmental Considerations

Offshore mining has less environmental impact than land-based mining, making it a more sustainable option. The Vadhvan Port is set to become India's 13th major container port and its largest by capacity. It will be developed under the landlord model with terminals built through Public-Private Partnerships (PPP).

The Union Cabinet approved the project on June 19, 2024, with construction planned in two phases. The port's all-weather deep draft infrastructure aims to enhance connectivity to major hinterlands and boost India's maritime economy under the Sagarmala initiative.

The Ministry of Mines reserved the area for VPPL following an application by Jawaharlal Nehru Port Authority (JNPA) in October 2023. A 10-year mining licence was granted under the Offshore Area Mineral Development & Regulations Act 2006.