Paradip Port gets ₹427.80 crore upgrade: 18.5-metre deep-draft, 7 projects inaugurated
Synopsis
Key Takeaways
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal on 21 August inaugurated seven major infrastructure projects worth ₹427.80 crore at Paradip Port Authority in Paradip, Odisha, marking a significant expansion of one of India's busiest eastern seaports. The developments include a capital dredging project that gives the port an 18.5-metre deep-draft capability — enabling it to berth fully laden Capesize vessels in its inner harbour for the first time.
Key Developments
The seven projects span navigation, connectivity, safety, sustainability, residential infrastructure, and community development. Alongside the inaugurations, Sonowal witnessed the signing of concession agreements for three mechanisation projects worth ₹1,580.36 crore, aimed at improving cargo-handling efficiency and cutting vessel turnaround time. Together, the two tranches represent a combined infrastructure investment of over ₹2,008 crore at the port.
What the Deep-Draft Capability Changes
The 18.5-metre deep-draft achieved through capital dredging is a transformational upgrade. Capesize vessels — among the largest bulk carriers in global trade — were previously unable to enter Paradip's inner harbour fully laden. Their access will reduce the need for cargo lighterage, improving economies of scale and lowering logistics costs for bulk commodity importers and exporters in eastern India. This comes amid India's broader push to develop world-class port infrastructure under its maritime vision framework.
Connectivity and Green Initiatives
Among the inaugurated projects is the Atharbanki Second New Bridge, a 500-metre, three-lane bridge with footpaths and a dedicated pipeline corridor across Atharbanki Creek. The bridge is expected to ease congestion along a route used by nearly 3,000 trucks daily. Separately, a Piped Natural Gas (PNG) supply project, developed in partnership with Bharat Petroleum Corporation Ltd (BPCL), will extend PNG connectivity to 546 residential quarters in Madhuban, reportedly reducing household gas expenses by up to 40 per cent. Officials say this makes Paradip the first major Indian port to provide PNG to its residential township. Sonowal also planted Paradip Port's one-millionth tree, marking a milestone in the port's green-cover programme.
What the Government Said
'The expansion of Paradip Port's capacity is not only about strengthening one port; it is about creating a growth multiplier for eastern India,' Sonowal said. He added that deeper drafts, modern cargo-handling infrastructure, improved connectivity, and greater mechanisation position Paradip to drive trade, logistics, industry, and employment across the region — and to contribute to India's emergence as a globally competitive maritime economy.
Broader Impact and What's Next
Paradip Port is a critical node for bulk cargo — particularly coal, fertilisers, and iron ore — serving industries across Odisha, Jharkhand, and Chhattisgarh. The mechanisation concession agreements signed on Friday are expected to further raise throughput capacity and reduce operational bottlenecks. Industry observers note that the port's upgrades align with the Centre's Sagarmala programme and the broader goal of reducing India's logistics costs, which remain among the highest in Asia as a share of GDP. Implementation timelines for the mechanisation projects have not yet been officially announced.