Key points
- Union Mines Minister G. Kishan Reddy and Maharashtra CM Devendra Fadnavis handed JNPA the Letter of Intent in Mumbai.
- The offshore sand block lies off the Daman coast about 50 km from the proposed Vadhavan Port site, at depths of 20 to 25 metres.
- The block is meant to supply about 200 million cubic metres of sand to reclaim land for the Vadhavan Greenfield Port, budgeted at Rs. 76,220 crore.
- This is the first mineral block allocated for exploration and production in India’s offshore areas, under the Offshore Areas Mineral Act as amended in August 2023.
Union Minister of Mines & Coal, Shri G. Kishan Reddy, and Chief Minister of Maharashtra, Shri Devendra Fadnavis handed over the Letter of Intent (LoI) for grant of Composite licence in respect of offshore Blocks of construction sand to Chairman, Jawaharlal Nehru Ports Authority (JNPA) in Mumbai today. The construction sand from the offshore mineral block, located off the coast of Maharashtra, will be used for the reclamation and development of the Greenfield Port at Vadhavan, Palghar, Maharashtra by JNPA. The offshore sand block is located off the Daman coast about 50 km from the proposed Vadhavan Port site at a depth varying from 20 m. to 25 m.
The offshore construction sand block will meet the requirement of reclamation of about 200 million cubic metres of sand for the development of an all-weather Greenfield Major Port at Vadhavan in the State of Maharashtra. The Vadhavan Port is being developed at a total cost of Rs. 76,220 Cr and will create a cumulative capacity of 298 million metric tons per annum, including 23.2 million TEUs (Twenty Foot Equivalent Units) of container handling capacity, and will comprise 9 container terminals, each of 1000 meters length, 4 multipurpose berths etc. JNPA, as one of India’s leading port authorities, has played a pivotal role in driving the nation’s trade and logistics ecosystem
This is the first time a mineral block is being allocated for exploration and production of minerals in the offshore areas of India. The Parliament amended the Offshore Areas Mineral (Development & Regulation) Act, 2002, in August, 2023 which, inter alia, introduced provision of reservation of mineral blocks to the Government, Government companies or Corporations for the purposes of the Central Government.
At the request of the Ministry of Ports, Shipping and Waterways (MoPSW), the Ministry of Mines reserved the offshore area for the purpose of Central Government under the amended Act vide notification dated 21.12.2023. Today’s grant of Letter of Intent will allow the JNPA to obtain clearances for grant of composite licence in respect of the offshore block.
The identification of the offshore block was made after due consultation with the concerned Ministries and Departments, ensuring a holistic and well-coordinated approach towards offshore mineral development. The Letter of Intent awarded to JNPA today is a testament to these reforms, reinforcing commitment to responsible, efficient, and globally competitive offshore mineral development.
The allocation of the block will significantly reduce land-based dependence of construction sand for development and port operations of JNPA. This project is expected to generate employment, boost local industries, and support the government’s vision for Viksit Bharat by 2047.
JNPA will be adopting state-of-the-art dredging technology to ensure minimal disruption to marine biodiversity and adhere to the highest environmental standards. JNPA is expected to adhere to Harit Sagar Guidelines and Maritime India Vision 2030, ensuring responsible extraction, land reclamation, and long-term ecological balance with its future-ready, sustainable port.
This initiative reflects government’s unwavering commitment to economic growth that is both inclusive and environmentally sustainable. This milestone reflects government’s proactive approach in unlocking the vast potential of maritime economy and India’s vast offshore resources.
