Essar Ports wins ₹2,276 crore Tuna Tekra terminal project in Gujarat

Essar Ports Ltd has secured a letter of award from Deendayal Port Authority (DPA) to develop an 18.33 million tonne-a-year multipurpose cargo terminal at Tuna Tekra in Gujarat’s Kandla, with a total estimated project cost of ₹2,276.06 crore, as the company looks to expand its presence in India's port infrastructure sector.

The project 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 company said in a statement on Wednesday.

The project cost includes an investment of ₹1,552.57 crore by Essar Ports and ₹723.49 crore by DPA towards the development of the terminal and supporting infrastructure.

“The Tuna-Tekra project marks a defining moment for Essar Ports as we embark on a new journey to rebuild and expand our ports business. With an investment of approximately ₹2,000 crore, this project will serve as the foundation for our next phase of growth,” Ashish Rajgarhia, chief executive of Essar Ports, said in the statement.

The project is also significant for the company as it seeks to rebuild its ports business after monetizing a substantial portion of its earlier port capacity through strategic transactions. Essar Ports has developed and operated 168 million tonnes per annum (mtpa) of capacity across India and monetized 148mtpa through such transactions, according to the company.

The proposed terminal will comprise 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, with a draft capability of up to 18 metres.

DPA will provide 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 line with applicable environmental requirements and the government’s Green Port Policy, the company said.

The additional cargo-handling capacity is expected to ease pressure on existing dry-cargo berths at the port, improve operational efficiency and strengthen multimodal connectivity. The ability to accommodate larger vessels could also help improve shipping efficiency and reduce logistics costs.

Kandla, officially known as Deendayal Port, is a key maritime gateway on India’s western coast and handles a range of bulk and other cargoes. The addition of a multipurpose terminal at Tuna Tekra is expected to strengthen the port’s capacity to cater to growing trade and cargo-handling requirements.

For Essar, the project marks a fresh investment push in a sector where private participation has expanded through long-term concessions at major ports. The company's current portfolio has around 60mtpa of operational capacity across India, Indonesia and the UK.

V. Srinivasan, operating partner-infrastructure at Essar Group, said the company was focused on expanding its portfolio, strengthening operational capabilities and creating long-term value.

“Our strategy is to build on our established expertise in port infrastructure while pursuing opportunities that support India’s growing trade and infrastructure requirements. We remain committed to disciplined investments, operational excellence and building a stronger, future-ready business,” Srinivasan said in the statement.

Rajgarhia said the company was proud to take forward a project whose foundation stone was laid by Prime Minister Narendra Modi, adding that the investment reaffirmed its commitment to developing maritime infrastructure in line with the vision of Viksit Bharat 2047.

Essar Group, which has interests across energy, infrastructure, metals and mining, and technology and retail, has more than five decades of experience in building and operating infrastructure assets. Its ports business is now seeking to build on that experience through new investments in India and international markets.

Subhash is the infrastructure editor at Mint and tracks the momentous developments taking place in the space that is fast changing the Indian landscape. He finds reporting to be a passion that provides the necessary adrenaline rush and keeps you going.

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