India's Cabinet Approves $9.14 Billion Development of New Deep-Water Port Near Mumbai

India's cabinet has given the green light for the development of a new deep-water port that forms a crucial part of the country's ambitious strategy to establish sea and rail connections linking Asia and Europe through the Middle East.

Location and Investment

The Vadhavan port, slated to be constructed on India's western coast, will be situated approximately 150 km (93 miles) from the financial hub of Mumbai. The development comes with a hefty price tag of 762 billion Indian rupees, equivalent to $9.14 billion, as disclosed by Information Minister Ashwini Vaishnaw during a press briefing.

Key Facilities and Capacity

The port will boast terminals designed to handle "mega vessels" as well as terminals dedicated to the processing of petroleum, automobiles, and other imports. It is expected to have an annual capacity of 298 million metric tons, catering to various essential industrial sectors, stated Vaishnaw.

Timeline and Significance

According to Vaishnaw, the initial phase of construction is projected to be finalized by 2029, indicating the scale and complexity of the undertaking. Emphasizing its strategic importance, Vaishnaw highlighted that the port will serve as a vital component of the India-Middle East corridor, aligning with the comprehensive plan unveiled in September during the G20 summit in New Delhi.

"This endeavor is poised to substantially amplify economic activity in the foreseeable future," Vaishnaw remarked, underscoring the significance of the project.