The Kandla Port in India is undergoing capacity expansion as part of a broader initiative to boost the nation’s maritime capabilities. The Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, announced an investment exceeding ₹57,000 crores. This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World’.
New Mega Shipbuilding Project
A new Mega Shipbuilding Project is set to be established at Kandla Port with an investment of ₹30,000 crores. This facility aims to develop technical capabilities for manufacturing Very Large Crude Carriers (VLCCs) and similar vessels. It will have the capacity to produce 32 new ships and repair 50 ships annually. The project will occupy over 8,000 acres and will include a marina, fishing harbour, townships, and a marine industrial cluster.
New Cargo Terminal Development
An additional investment of ₹27,000 crores will fund a new cargo terminal outside Kandla Creek. This terminal will enhance the port’s capacity by 135 million tonnes per annum (MTPA). The terminal will employ modern cargo handling equipment and more efficient evacuation systems. This development will convert existing dry bulk cargo jetties into liquid jetties, improving the handling of liquid cargo and reducing turnaround times for liquid tanker vessels.
Strategic Importance of Ports
Ports are crucial for a nation’s economy. They serve as vital links for trade and economic development. The Kandla Port expansion aims to meet India’s growing ambitions by enhancing operational efficiency. The segregation of dry and liquid cargo will streamline processes and boost productivity.
Additional Projects and Future Prospects
The Deendayal Port Authority (DPA) is also pursuing several projects to further enhance Kandla Port’s capacity. A new mega cargo terminal, capable of handling 2.19 million Twenty-foot Equivalent Units (TEUs), is under construction at Tuna Tekra. Additionally, three new oil jetties are being built, which will increase liquid cargo handling capacity by 24.5 MTPA. These developments signal a commitment to enhancing maritime infrastructure and supporting India’s economic growth.
Vision for Atmanirbhar Bharat
The expansion of Kandla Port is part of India’s broader vision for self-reliance, termed Atmanirbhar Bharat. The government aims to position India as a global manufacturing hub by 2047. Enhancing port infrastructure is vital to achieving this goal. The Kandla Port expansion will play a very important role in facilitating trade and supporting job creation in the region.
Questions for UPSC:
- Discuss the significance of maritime trade in India’s economic development.
- Critically examine the impact of the ‘Make in India’ initiative on the manufacturing sector.
- Explain the role of ports in enhancing trade efficiency and economic growth.
- Comment on the strategic importance of Kandla Port in India’s maritime infrastructure development.
Answer Hints:
1. Discuss the significance of maritime trade in India’s economic development.
- Maritime trade accounts for about 95% of India’s trade by volume and 70% by value.
- Ports facilitate the import of essential goods and export of local products, boosting economic activity.
- Efficient maritime trade reduces logistics costs, improving competitiveness for Indian businesses.
- It creates job opportunities in shipping, logistics, and ancillary industries, contributing to economic growth.
- Investment in port infrastructure enhances trade capacity and supports regional development, especially in coastal areas.
2. Critically examine the impact of the ‘Make in India’ initiative on the manufacturing sector.
- ‘Make in India’ aims to increase the manufacturing sector’s contribution to GDP from 16% to 25% by 2025.
- The initiative has attracted foreign direct investment (FDI), boosting industrial growth and technology transfer.
- It promotes innovation and entrepreneurship, encouraging a competitive manufacturing environment.
- Challenges include regulatory hurdles, inadequate infrastructure, and skill shortages in the workforce.
- Success depends on effective implementation, policy support, and collaboration between government and industry.
3. Explain the role of ports in enhancing trade efficiency and economic growth.
- Ports serve as critical nodes in global supply chains, facilitating the movement of goods efficiently.
- Modern port infrastructure reduces turnaround times for vessels, enhancing overall trade efficiency.
- Segregation of cargo types (liquid and dry) improves operational processes and reduces congestion.
- Investment in port technology and equipment boosts productivity and service quality.
- Efficient ports attract more shipping lines and trade, driving regional economic development and job creation.
4. Comment on the strategic importance of Kandla Port in India’s maritime infrastructure development.
- Kandla Port is one of India’s busiest ports, handling volumes of cargo, especially in the western region.
- Its strategic location allows it to serve major trade routes, enhancing India’s maritime connectivity.
- The port’s expansion will facilitate the handling of larger vessels, improving operational efficiency.
- Investment in Kandla Port aligns with national goals of self-reliance and economic growth under Atmanirbhar Bharat.
- Strengthening Kandla Port supports regional development, creating jobs and boosting local industries.
