Adani Ports Gets Environmental Clearance For Rs 45,000 Crore Mundra Port Expansion

Adani Ports & Special Economic Zone Ltd (APSEZ) has acquired crucial environmental and coastal regulation zone approval from the central government to expand the Mundra port in Gujarat significantly.

The license authorizes the company to more than double the port’s capacity for an investment of Rs 45,000 crore.

Mundra Port, located in Gujarat’s Kutch area, is India’s largest commercial and top container port by volume.

In FY24, it carried 179.6 million tons of cargo, including 7.4 million twenty-foot equivalent units (TEUs).

This accounts for 44% of container traffic and more than 27% of the overall cargo in India.

With the additional approvals, APSEZ intends to expand Mundra’s capacity from 225 million tonnes to 514 million tonnes, spanning an area of 3,335 hectares.

This extension will accommodate multi-purpose, liquid, gas, and cryogenic cargo, allowing Mundra to handle a projected 200 million tonnes cargo in FY25, a first for an Indian port.

The clearance comes after the Ministry of Environment’s Expert Appraisal Committee (EAC) reviewed APSEZ’s submission and supported the project on May 15, 2024.

The ministry’s final clearance will most likely be a formality.

APSEZ’s strategic development in Mundra is critical to the company’s long-term growth ambitions.

The port is a key component of APSEZ’s goal of reaching 500 million tons of cargo volume by 2025.

This goal is supported by the recent acquisition of Gopalpur Port and the planned commissioning of Vizhinjam Port and West Coast Terminal (WCT).

Ashwani Gupta, APSEZ’s Director and CEO, stated in the company’s earnings announcement in May 2024 that APSEZ is well positioned to attain 500 MMT of cargo volumes in 2025.

This expansion is part of the Adani Group’s more extensive strategy, which includes developing Mundra as the world’s largest renewable energy manufacturing hub.

The Mundra port’s expanded capacity could also bolster APSEZ’s position in negotiations with the Gujarat government to extend the port’s concession period, which is scheduled to expire in 2031 after a 30-year tenure.

Despite a favourable outcome, the closing of Gangavaram Port caused a minor setback for APSEZ, resulting in a cargo volume loss of approximately 6 million metric tons (MMT) in April and May 2024.

The firm reached a significant milestone in May 2024, when Mundra handled 17.6 MMT of cargo, the most crucial monthly volume ever recorded at an Indian port, and more than 700,000 TEUs in a single month.

Reference: Business Standard, Hindustan Times

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Source: Maritime Shipping News