Mumbai: In a major development for the Vadhvan Port Project Ltd. (VPPL), the Ministry of Mines has officially issued a Mining Licence for the dredging of sand required for reclamation at the site of the greenfield Vadhvan Port Project in Palghar District, Maharashtra. The port, which is being developed on reclaimed land, will span 1,448 hectares, with 200 million cubic meters of sand needed for the reclamation process. The sand will be dredged from an offshore location, approximately 60 km from the site and 50 km off the coast of Daman.
The Ministry of Mines, in December 2023, had previously reserved an area of 10,277.1 hectares (102.77 sq. km) for the dredging activity, based on a detailed study conducted by IIT Madras. After conducting borehole tests and analyzing the samples, IIT Madras confirmed that the sand is suitable for reclamation purposes. The sand mining licence, valid for 10 years, was issued on February 28, 2025, under the Offshore Area Mineral (Development & Regulations) Act 2006.
The Letter of Intent (LOI) was handed over by Shri G. Kishan Reddy, Minister of Mines & Coal, in the presence of Hon’ble Chief Minister of Maharashtra, Shri Devendra Fadnavis, to Shri Unmesh Sharad Wagh, CMD VPPL and Chairman of Jawaharlal Nehru Port Authority (JNPA). Also present at the ceremony were Shri V. Kantha Rao, Secretary of Mines, Government of India, and Shri Shambhuraj Desai, Minister of Mines, Government of Maharashtra.
The sand dredged from the sea will offer significant cost savings, with the estimated cost for 200 million cubic meters of land-based sand at Rs. 12,000 crores, including Rs. 1,440 crores as royalty to the Government of India. In contrast, dredging sand from the sea is expected to save around Rs. 6,000 crores, while also minimizing environmental impact compared to land-based mining.
About Vadhvan Port:
Situated in Palghar district, near Dahanu, Maharashtra, the Vadhvan Port is set to become India’s 13th major and largest container port. The project, being developed under a landlord model with Public-Private Partnerships (PPP), received Cabinet approval on June 19, 2024, and will be constructed in two phases. Strategically located with seamless connectivity to key hinterlands, the port’s deep draft and all-weather design make it pivotal for India’s maritime economy under the Sagarmala initiative.
Vadhvan Port is committed to being a 100% green port, incorporating sustainable practices across all its operations, aligning with eco-friendly standards since its inception.
