Balagarh Port project gets ₹539 crore push, 2,600 jobs eyed by 2028
Synopsis
A ₹539 crore riverine port at Balagarh, long shadowed by Centre-state friction, is finally moving. With clearances in hand, EPC tenders opened, and 2,600 jobs on the table, the project could redraw eastern India's cargo map — pulling freight off Kolkata's choked streets and onto National Waterway-1 by 2028.
Key Takeaways
The Balagarh port project in Hooghly carries an estimated cost of ₹539.17 crore .
Cost split: ₹131.97 crore EPC (funded by IWAI) and ₹407.20 crore PPP (concessionaire-funded).
Proposed handling capacity: 2.7 MMTPA ; expected to create 2,600 direct and indirect jobs.
Environmental clearance received on 24 January 2025 ; ROB work order issued on 9 January 2026 .
EPC works (excluding dredging) targeted for completion by 31 March 2028 ; PPP works within three years of concession award.
Foundation stone laid by PM Narendra Modi in January; project to boost National Waterway-1 traffic.
The Balagarh port project in West Bengal's Hooghly district is set to gain fresh momentum following the change of government in the state, with shipping ministry officials indicating smoother execution of pending clearances and on-ground works, according to reports. The ₹539.17 crore facility, being developed by the Syama Prasad Mookerjee Port Authority (SMPA), will house dedicated container and coal berths to ease cargo congestion within Kolkata.
Project scope and cost structure
The project carries an estimated outlay of ₹539.17 crore, split between an Engineering Procurement and Construction (EPC) component of ₹131.97 crore and a Public Private Partnership (PPP) component of ₹407.20 crore. The EPC portion will be funded by the Inland Waterways Authority of India (IWAI), while the PPP component will be financed and executed by the selected concessionaire.
The proposed cargo handling capacity is pegged at 2.7 million metric tonnes per annum (MMTPA). SMPA remains the only major riverine port in the country, and the Balagarh berths are designed to absorb anticipated traffic growth while pulling cargo movement out of intra-city routes.
Timeline and clearances
The foundation stone for the project was laid by Prime Minister Narendra Modi in January this year. Environmental clearance was secured on 24 January 2025, and land for the facility is already in SMPA's possession.
Under the EPC component, the road construction tender was opened on 2 February 2026, and the work order for the Road Over Bridge (ROB) was issued on 9 January 2026. Officials said the EPC works, excluding dredging, are scheduled for completion by 31 March 2028. Dredging will be undertaken by the IWAI immediately before the PPP operators begin jetty construction, which is to be completed within three years of the concession award.
Why it matters
The Balagarh facility is positioned to strengthen cargo movement along National Waterway-1, deepening inland waterway connectivity and lowering logistics costs across eastern India. By shifting bulk handling out of Kolkata's city limits, the project aims to decongest urban freight corridors and seed an alternative trade hub in the Hooghly belt.
Employment and local impact
An official said the project is expected to generate roughly 2,600 direct and indirect jobs, with a sizeable share accruing to the local population. Officials, initially wary of commissioning-stage hurdles, are now reportedly assured of full cooperation from the state administration — a shift that could prove decisive for projects historically slowed by Centre-state friction in Bengal.
What's next
With clearances in place and EPC tenders underway, attention now turns to the PPP concessionaire selection and the dredging schedule that will dictate when the jetties can rise. If the 31 March 2028 EPC deadline holds, Balagarh could become operational well before the decade closes.
Point of View
2.7 MMTPA, 2,600 jobs — are modest by national port standards, but the strategic value lies in activating National Waterway-1, a corridor India has under-utilised for decades. The real question is whether the PPP concessionaire timeline holds; riverine port projects in India have a consistent track record of dredging delays. If Balagarh delivers by 2028, it could become a template for reviving inland water freight at scale.
NationPress
28 Jul 2026
Frequently Asked Questions
What is the Balagarh port project?
The Balagarh port project is a riverine port facility being developed by the Syama Prasad Mookerjee Port Authority in Hooghly district, West Bengal, with dedicated container and coal berths. It is designed to handle 2.7 million metric tonnes of cargo per annum and decongest intra-city freight movement in Kolkata.
How much will the Balagarh port project cost?
The estimated cost is ₹539.17 crore, comprising a ₹131.97 crore EPC component funded by the Inland Waterways Authority of India and a ₹407.20 crore PPP component financed by the selected concessionaire.
When will the Balagarh port project be completed?
The EPC works, excluding dredging, are scheduled for completion by 31 March 2028. The PPP component, including jetty construction, must be completed within three years of the concession award.
How many jobs will the Balagarh port project create?
The project is expected to generate around 2,600 direct and indirect employment opportunities, with a significant share earmarked for the local population in the Hooghly region.
Why is the Balagarh port project important for inland waterways?
The project will channel cargo onto National Waterway-1, strengthening inland waterway connectivity in eastern India. It is also expected to lower logistics costs and create an alternative trade hub outside Kolkata's congested city limits.
