India’s First Offshore Mineral Block Allocation to Boost Vadhavan Port Development

Mumbai: In a historic move, Union Minister of Mines & Coal, G. Kishan Reddy, and Maharashtra Chief Minister, Devendra Fadnavis, handed over the Letter of Intent (LoI) for granting a composite licence for an offshore construction sand block to the Chairman of the Jawaharlal Nehru Port Authority (JNPA) in Mumbai today. This marks the first-ever allocation of a mineral block for exploration and production in India’s offshore areas, setting a precedent in the maritime economy.

The offshore mineral block, situated approximately 50 km off the Daman coast at a depth ranging from 20 to 25 meters, will be crucial for the reclamation and development of the Greenfield Port at Vadhavan in Palghar, Maharashtra. The sand extracted from this offshore block will be used to meet the reclamation requirement of about 200 million cubic meters essential for the port’s development.

A Milestone for Vadhavan Port

The Vadhavan Port, being developed at an estimated cost of Rs. 76,220 crore, is set to be a game-changer in India’s maritime infrastructure. Once completed, it will have a cumulative handling capacity of 298 million metric tons per annum, including 23.2 million TEUs (Twenty Foot Equivalent Units) of container capacity. The port will comprise nine container terminals, each spanning 1,000 meters in length, along with four multipurpose berths. JNPA, a leading port authority, has played a crucial role in enhancing the nation’s trade and logistics ecosystem.

Legislative and Policy Reforms Pave the Way

The allocation was made possible following amendments to the Offshore Areas Mineral (Development & Regulation) Act, 2002, in August 2023. The revised Act introduced provisions for reserving mineral blocks for government use, allowing greater control over offshore resource development. Responding to a request from the Ministry of Ports, Shipping and Waterways (MoPSW), the Ministry of Mines reserved the offshore area for the Central Government’s use through a notification dated December 21, 2023.

Today’s grant of the LoI enables JNPA to obtain the necessary environmental and regulatory clearances for the composite licence, ensuring compliance with national and international maritime and ecological standards.

Economic and Environmental Considerations

The identification of this offshore block followed extensive consultations with various Ministries and Departments to ensure a well-coordinated approach to offshore mineral development. The allocation is expected to significantly reduce dependence on land-based sources of construction sand, facilitating sustainable port development while minimizing ecological disruption.

The initiative is projected to generate employment, boost local industries, and contribute to India’s long-term vision of ‘Viksit Bharat by 2047.’ JNPA will employ cutting-edge dredging technology to minimize disruption to marine biodiversity, adhering to the highest environmental standards, including the Harit Sagar Guidelines and Maritime India Vision 2030.

Government’s Commitment to Maritime Growth

This milestone underscores the government’s proactive stance in harnessing India’s vast offshore resources for economic growth while ensuring sustainability. The allocation of the offshore mineral block strengthens India’s maritime infrastructure, reinforcing the nation’s position as a global trade and logistics hub. By adopting eco-friendly reclamation practices and state-of-the-art port facilities, JNPA is setting new benchmarks for responsible, efficient, and competitive offshore mineral development.