(THE NEWSMAN OF INDIA.COM) Mumbai, February 28, 2025: The Vadhavan Port Project Ltd. (VPPL) has received a major boost as the Ministry of Mines officially granted a mining license for offshore sand dredging to support the development of the deep-draft greenfield Vadhvan Port in Palghar district.

The port, which will be constructed on 1,448 hectares of reclaimed land in the sea, requires approximately 200 million cubic meters of sand for land creation. The dredging site, located 60 km from the project site and 50 km off the coast of Daman, has been reserved for this purpose by the Ministry of Mines since December 21, 2023. A detailed study conducted by IIT Madras confirmed the suitability of the sand for reclamation.

The mining license, issued under the Offshore Area Mineral (Development & Regulation) Act, 2006, is valid for 10 years. The Letter of Intent (LOI) was formally handed over today by Union Minister of Mines & Coal, G. Kishan Reddy, in the presence of Maharashtra Chief Minister Devendra Fadnavis, CMD of VPPL & Chairman of JNPA, Unmesh Sharad Wagh, IRS, Secretary of Mines Kanta Rao, IAS, and Maharashtra’s Minister of Mines, Shambhuraj Desai.

This initiative marks a significant cost-saving move, with the estimated cost of land-based sand procurement at ₹12,000 crore, including ₹1,440 crore in royalties to the Government of India. By opting for offshore dredging, the project has achieved savings of ₹6,000 crore while minimizing environmental impact compared to land-based mining.

The Vadhvan Port, once completed, is expected to enhance India’s maritime infrastructure and boost trade efficiency in the region.