Deendayal Port Authority, Kandla, a Mega Port on India’s western coast, has issued the Letter of Award (LoA) to M/s Essar Ports Limited on 21^st October 2026 for development of the Multi-Purpose Cargo Terminal at Tuna Tekra, Kandla. The project will be implemented on a Build-Operate-Transfer (BOT) basis under the Public-Private Partnership (PPP) mode for a concession period of 30 years, marking a significant step towards strengthening India’s maritime infrastructure.

M/s Essar Ports Limited emerged as the highest bidder through a global competitive bidding process, offering a royalty of ₹61 per tonne payable to DPA. The terminal will be developed on the eastern side of the Mega Container Terminal of DPA being developed by DP World under PPP Mode at Tuna Tekra. The project is expected to augment DPA’s multipurpose cargo-handling capacity and support the long-term growth of domestic and EXIM trade.

The terminal is designed for an annual cargo-handling capacity of 18.33 million tonnes. The estimated project cost is ₹2,276.06 crore, comprising ₹1,552.57 crore to be invested by the concessionaire and ₹723.49 crore by DPA. DPA will provide common-user infrastructure, including dredging of the access channel, berth pockets and turning circles, along with a common approach road.

The facility will comprise four berths, each 300 m long, providing an aggregate berth length of 1,200 m. It is planned to accommodate Cape-size vessels of up to 1,70,000 DWT, with draft capability of up to 18 m. Commercial operations are expected to commence by 2031.                               

 The terminal will be developed and operated in accordance with applicable environmental requirements and the Green Port Policy, with sustainability considerations integrated into its planning, construction and operations.