In a significant move towards boosting India’s maritime economy, the Ministry of Mines has awarded the Letter of Intent (LoI) to the Jawaharlal Nehru Port Authority (JNPA) for the allocation of an offshore construction sand block. The letter was handed over in Mumbai by Union Minister of Mines & Coal, Shri G. Kishan Reddy, and Maharashtra Chief Minister, Shri Devendra Fadnavis. This step marks the beginning of a crucial initiative to support the development of the Greenfield Port at Vadhavan, Palghar, Maharashtra.
The allocated offshore mineral block, located about 50 kilometers off the Daman coast, will play a vital role in supplying nearly 200 million cubic meters of construction sand necessary for land reclamation at the Vadhavan Port. With a planned investment of ₹76,220 crore, the port is set to become a major hub for trade and logistics, boasting a handling capacity of 298 million metric tons per annum, including 23.2 million TEUs (Twenty-Foot Equivalent Units) of container handling capacity. The development will include nine large container terminals, four multipurpose berths, and other crucial infrastructure to strengthen India’s maritime trade.
This is a historic moment, as it is the first instance of a mineral block being allocated for offshore exploration and mineral production in India. The initiative follows amendments made to the Offshore Areas Mineral (Development & Regulation) Act, 2002, in August 2023, which allowed the government to reserve mineral blocks for national development purposes. In response to a request from the Ministry of Ports, Shipping, and Waterways (MoPSW), the Ministry of Mines officially reserved the offshore area for government use in December 2023, paving the way for today’s landmark decision.
The identification and allocation of the offshore block were carried out after extensive consultations with relevant ministries and departments, ensuring a well-coordinated approach to offshore mineral development. The project is expected to have far-reaching benefits, reducing dependence on land-based sources of construction sand while simultaneously advancing the government’s goal of developing world-class infrastructure. The economic impact is expected to be significant, generating employment opportunities, boosting local industries, and supporting the vision of “Viksit Bharat” by 2047.
JNPA is committed to adhering to the highest environmental standards while executing this project. The port authority will employ advanced dredging technology to minimize disruption to marine biodiversity and ensure sustainable extraction. The project aligns with the Harit Sagar Guidelines and Maritime India Vision 2030, which emphasize responsible resource utilization and long-term ecological balance.
This initiative underscores the government’s dedication to fostering economic growth while maintaining environmental sustainability. By tapping into offshore mineral resources, India is taking a decisive step toward strengthening its maritime economy, reducing resource dependency, and positioning itself as a leader in global trade.
