Reliance Industries Commits ₹645 Crore for Liquid Jetty at Vadhvan Port

Reliance Industries Ltd (RIL) has signed a memorandum of understanding (MoU) with Vadhvan Port Project Ltd (VPPL) for the allocation of a liquid cargo jetty and 50 acres of land at Vadhvan Port. The project is estimated to cost ₹645 crore and will support Reliance’s petrochemical units in Palghar taluka. The development is expected to be operational by 2030.

As of 11:27 AM, on January 22, Reliance Industries Ltd is trading at ₹1,275.30, up by 0.13% today, but down by 15.02% over the past six months and 4.01% over the past year.

Details of Vadhvan Port Project

The Vadhvan port is located in Palghar, Maharashtra, and is being developed under the landlord port model. In this model, the port authority functions as a regulator and landlord, while private companies handle operations. The port will have nine container terminals with a combined capacity of 23.2 million twenty-foot equivalent units (TEUs) annually. 

Seven terminals will have container storage directly behind the quay apron, while the other two terminals will use backup areas located 1 km away.

Public-Private Partnership

Reliance’s liquid jetty and six liquid storage tanks will be developed through a transparent, competitive bidding process under the public-private partnership (PPP) framework. The landlord model will help with revenue sharing between the port authority and private operators.

Capacity and Expansion

The deep water port will feature a 20-meter draft, enabling it to accommodate large container ships with a capacity of over 24,000 TEUs. In addition to container terminals, the port will have multi-purpose berths, liquid bulk berths, and connectivity through an 8-lane road and 2-line rail network.

Equity Stake and Timeline

Jawaharlal Nehru Port Authority (JNPA) holds a 74% stake in the Vadhvan Port project, while the remaining 26% is held by the Maharashtra Maritime Board (MMB). The first phase of the project is expected to be completed by 2029, and the entire port is estimated to be operational by 2030.

Additional Funding 

Housing and Urban Development Corporation (Hudco) has committed up to ₹25,000 crore for the development of ports and other PPP projects, including Vadhvan. Once operational, the port will handle 298 million metric tonnes (MMT) of cargo annually.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing