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. The project, valued at ₹2,276.06 crore, will be executed under a 30-year build-operate-transfer (BOT) concession through a public-private partnership (PPP) route, the company announced on Wednesday, marking a major expansion in its port infrastructure portfolio.
Essar Ports emerged as the highest bidder in a global competitive bidding process for the Tuna Tekra terminal project. The total project cost includes an investment of ₹1,552.57 crore by Essar Ports and ₹723.49 crore by DPA for developing the terminal and supporting infrastructure. Ashish Rajgarhia, chief executive of Essar Ports, described the project as a defining moment for the company’s efforts to rebuild and expand its ports business after monetizing a significant portion of its earlier capacity.
The project is significant as Essar Ports aims to rebuild its presence in the sector after having developed and operated 168 million tonnes per annum (mtpa) of capacity across India and monetized 148 mtpa through strategic transactions. The Tuna Tekra terminal will serve as a foundation for the company’s next phase of growth in India’s competitive port infrastructure market, which is witnessing increased investment and modernization efforts.
The Tuna Tekra terminal project is scheduled for development over the next 30 years under the BOT concession. Essar Ports’ investment of ₹1,552.57 crore, combined with DPA’s ₹723.49 crore contribution, totals ₹2,276.06 crore, positioning the company to enhance cargo handling capacity at Kandla, one of India’s key port hubs.