In a major boost to maritime infrastructure along India’s eastern coastline, the Visakhapatnam Port Authority (VPA) has announced its participation in the upcoming Bahuda Greenfield Port Project in Odisha, acquiring a 14% equity stake in the Special Purpose Vehicle (SPV) formed for the venture.
The SPV, which will spearhead the development of the Bahuda Port project, is being led by the Paradip Port Authority (PPA) with a majority 51% stake, followed by the Odisha Maritime Board (26%), VPA (14%), and the Sagarmala Finance Corporation Limited (9%). The port will be developed as a satellite port to Paradip Port, with a projected cargo handling capacity of 150 million tonnes per annum.
The MoU for the Rs 21,500 crore project was signed on Saturday at Bhavnagar, during the visit of Prime Minister Narendra Modi and Union Minister for Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal. The project falls under the broader framework of the Maritime India Vision-2030 and the PM Gati Shakti National Master Plan, aimed at creating world-class port infrastructure and enhancing coastal logistics.
According to VPA officials, the land survey has been completed, and the Detailed Project Report (DPR) is expected to be awarded to a suitable agency shortly. The majority of the land required comprises salt lands, and formal allotment by the Andhra Pradesh and Odisha Governments is awaited before construction begins.
PPA Chairman P.L. Harnadh, a former Deputy Chairman of VPA, emphasized the strategic significance of Bahuda Port on the East Coast, stating that it will function as a major port serving both Andhra Pradesh and Odisha.
This development comes as part of VPA’s broader expansion plans, including a Rs 1,500 crore investment in developing a Special Economic Zone (SEZ) at Mulapeta Port, currently under development.
VPA also holds a 19.44% stake in Dredging Corporation of India Limited (DCIL), a strategic acquisition made in 2019 along with PPA, Jawaharlal Nehru Port Authority, and Deendayal Port Authority, who together bought out the Government of India’s 73.47% stake for Rs 1,056 crore.
In a related move, the Andhra Pradesh Government has proposed the establishment of a port and maritime industrial cluster at Dugarajapatnam in Nellore district, with an anticipated investment of Rs 26,000 crore, seeking a Central grant of Rs 3,500 crore. VPA is expected to be an equity partner in that project as well.
