The Centre has sanctioned ₹430.7 crore to Syama Prasad Mookerjee Port, Kolkata (SMPK), to undertake dredging operations aimed at maintaining navigability and ensuring the smooth movement of vessels at Kolkata and Haldia ports.
The funds will be utilised to remove accumulated silt and sand deposits from the Hooghly River, maintaining adequate channel depth for safe vessel navigation and uninterrupted port operations.
The Kolkata Dock System requires regular dredging along a 232-km stretch of the Hooghly River, while the Haldia Dock Complex needs maintenance dredging along a 125-km stretch. Sediment accumulation in these channels reduces navigable depth and can restrict vessel movements, particularly for larger ships.
Regular dredging is considered essential to sustaining the operational viability of Kolkata Port, given the continuous sedimentation in the Hooghly River. While central financial assistance remains crucial, SMPK is also pursuing a long-term strategy to reduce its dependence on government funding and achieve financial self-reliance.
Under the proposed funding transition, central assistance for dredging will be progressively reduced, with SMPK expected to finance the entire dredging expenditure through its internal resources after the 2030-31 financial year, an official said.
From 2026-27, the port authority will also be required to meet specified performance targets to qualify for central financial assistance. These benchmarks will include cargo volumes handled through public-private partnerships (PPPs), modernisation of cargo-handling facilities, growth in overall cargo throughput and earnings before tax, excluding subsidy income.
The funding framework is expected to link government support more closely to operational performance while encouraging SMPK to strengthen its revenue base and financial sustainability.