Vadhvan Port Project Ltd (VPPL) has extended the bid submission deadline by three months—until May 18—for the ₹22,323.47 crore contract involving offshore dredging, reclamation, and construction of an offshore protection bund for the proposed Vadhvan Port in Maharashtra.
The package, to be executed under the Public-Private Partnership (PPP) Hybrid Annuity Mode (HAM), forms a critical component of the ₹76,220 crore mega port project.
Land Acquisition Delays Trigger Extension
The extension follows delays in the statutory land acquisition process required for rail and road connectivity to the port. According to officials, although the land acquisition award is expected to be declared soon, taking possession of the land will take additional time.
Earlier, the Ministry of Road Transport and Highways issued a gazette notification declaring the 32-km stretch from NH-48 (Tawa Junction) to the proposed port site as a National Highway. This move enables land acquisition under the National Highways Authority of India (NHAI) Act for the development of an eight-lane access road. However, the cost of land acquisition will be borne by VPPL.
Officials emphasised that the approach road is critical for initiating construction, particularly for transporting quarry materials to the site, as existing local roads are inadequate for heavy-duty movement.
Three Key Project Components
The Vadhvan mega port project comprises three major components:
Near Shore Reclamation and Infrastructure – Awarded in December 2024 to Cemindia Projects Limited (formerly ITD Cementation India Ltd). The contractor has initiated pre-construction surveys but cannot commence reclamation work until land access is secured.
Breakwater Construction – Touted as the longest breakwater for any Indian port. Four bidders have submitted applications, and financial bids will be opened after security clearance from the Centre.
Offshore Dredging, Reclamation and Protection Bund (HAM Package) – The largest package, estimated at ₹22,323.47 crore.
Why HAM Contract Award Is Being Deferred
Under the HAM model, the payment structure follows a 45:55 ratio, with 45% funded upfront by VPPL and 55% invested by the private concessionaire. The concession period spans 15 years, including five years for construction (in two phases of 3+2 years) and 10 years for operation and maintenance.
However, officials noted that offshore reclamation cannot begin until 40–50% of the breakwater is completed to ensure wave protection. This milestone alone could take nearly two years.
Awarding the HAM contract prematurely could result in idle mobilisation, cost escalation, arbitration risks, and avoidable financial liabilities. “There is no point in issuing a work order when actual execution cannot begin for at least two years,” an official said.
India’s Largest Public Port
VPPL is a joint venture between Jawaharlal Nehru Port Authority (74% stake) and Maharashtra Maritime Board (26%).
Billed as India’s largest public port, Vadhvan is planned with a capacity to handle 298 million tonnes (mt) of cargo annually, including 23.2 million TEUs. The port is targeted to commence operations by 2029–30, though industry experts describe the timeline as ambitious given the scale and complexity of the project.
The phased approach underscores the government’s strategy to synchronise connectivity infrastructure with core marine works to ensure seamless execution of one of India’s most ambitious maritime infrastructure projects.
