In a surprising move that has set the port industry abuzz, the Paradip Port Authority, Visakhapatnam Port Authority, Sagarmala Finance Corporation Ltd., and the Odisha government have signed a memorandum of understanding (MoU) to develop a new major port at Bahuda Muhan in Ganjam district.
The MoU, signed on September 20 in Bhavnagar, Gujarat, in the presence of Prime Minister Narendra Modi, proposes the development of a 150 million tonne capacity port with an estimated investment of ₹21,500 crore. Spread across more than 6,700 acres of coastal salt land, the facility is expected to act as a hub for port-led industrialisation, logistics parks, and manufacturing clusters across Odisha and northern Andhra Pradesh.
However, the move has raised eyebrows as Bahuda Muhan lies within the 50 km exclusivity zone granted to Gopalpur Port, also located in Ganjam district. The concession agreement for Gopalpur, acquired by Adani Ports and Special Economic Zone (APSEZ) in March 2024 for ₹3,080 crore, gives the developer the right of first refusal to build any new port between Gopalpur and the Andhra Pradesh border at Ichchapuram.
Industry sources say the Odisha government had initially sought a no-objection certificate from APSEZ, which reportedly expressed keen interest in developing Bahuda Muhan itself, even proposing a feasibility study. But shortly after, the state went ahead with the MoU alongside central agencies, bypassing the concession agreement terms.
The decision has sparked concerns about market viability, given that Gopalpur Port is only 20 km away and APSEZ is already working on expanding it into a mega port.
“There will be no market for two ports a few kilometres apart. The concession agreement has been ignored, and the move has created a ruckus,” said an industry insider.
Gopalpur Port’s concession runs until 2036, with options for two 10-year extensions. With this latest development, industry watchers anticipate potential legal and commercial challenges that could cloud the future of the Bahuda Muhan project.
