The Board of Deendayal Port Authority (DPA) will meet on October 15 to consider approving Essar Ports Ltd’s bid to develop a multipurpose cargo terminal at Tuna Tekra, near Kandla, with an investment of ₹1,686.66 crore.
The terminal, located outside Kandla Creek, is designed to handle 18.33 million tonnes of non-liquid and non-containerised cargo annually. Essar Ports emerged as the highest bidder for the 30-year concession, quoting a royalty of ₹61 per tonne when bids were opened on April 24, 2026.
DPA Chairman Sushil Kumar Singh said the Ministry of Ports, Shipping and Waterways has approved the relaxations sought by the bidder regarding minimum guaranteed throughput and cargo-handling productivity norms. The Board’s approval will pave the way for issuing the Letter of Award.
The project had failed to attract a viable bid twice before being restructured. According to Singh, the revised terms address concerns over project viability while retaining its fundamental structure. He expressed confidence that the project would now move forward.
The proposed terminal marks a significant step in Essar Ports’ efforts to rebuild its port business after monetising a substantial portion of its earlier 228-million-tonne cargo-handling capacity through asset sales to Rosneft-backed Nayara Energy and ArcelorMittal Nippon Steel.
Essar Ports currently operates facilities with a combined capacity of 60 million tonnes across three locations and holds a concession to develop a 20-million-tonne coal berth in Mozambique.
The company is now pursuing a more commercially driven expansion strategy, moving beyond its earlier focus on captive cargo. Essar Ports has outlined an ambition to build 400–500 million tonnes of port capacity by 2047, positioning itself to benefit from India’s expanding maritime infrastructure and trade volumes.