Thane/Palghar, Feb 28 (PTI) Vadhavan Port Project Ltd (VPPL) on Friday said it has received the mining licence for offshore sand reclamation, which will pave the way for the development of the greenfield port in Palghar district.

The licence issued by the mines ministry marks a crucial step towards the creation of 1,448 hectares of reclaimed land in the sea, essential for the port's construction, VPPL said in a statement.

Reclamation process involves dredging 200 million cubic metres of sand from a designated area, 60 km from the project site and 50 km off the coast of Daman. The mines ministry has reserved 10,277.1 hectares (102.77 sq. km) for this purpose.

A comprehensive study conducted by IIT Madras, which included borehole testing and sample analysis, confirmed the suitability of this sand for reclamation purposes.

Following an application submitted by Jawaharlal Nehru Port Authority (JNPA) in October 2023, the Ministry of Mines reserved the area for VPPL and granted a 10-year mining licence under the Offshore Area Mineral (Development & Regulations) Act 2006.

The letter of intent was handed over by Union Minister of Mines & Coal G Kishan Reddy to CMD VPPL and JNPA Chairman Unmesh Sharad Wagh in the presence of Maharashtra Chief Minister Devendra Fadnavis.

The event was also attended by mines secretary Kanta Rao and Maharashtra's mines minister Shambhuraj Desai.

The total cost of 200 million cubic metres of sand from land sources is estimated at Rs 12,000 crore, which includes Rs 1,440 crore in royalties to the Union government.

But by sourcing sand from the sea, the project is expected to save approximately Rs 6,000 crore, compared to using sand and murum from land sources.

Additionally, offshore mining has minimal environmental impact in comparison to land-based mining, making it a more sustainable choice.

Vadhvan Port is set to become India's 13th major container port and the largest in terms of capacity.

To be developed under the landlord model, the port will feature terminals built through Public-Private Partnerships (PPP). The Union Cabinet had approved the project on June 19, 2024, with construction planned in two phases.

Strategically designed for seamless connectivity to major hinterlands, the port's all-weather deep draft infrastructure is expected to play a pivotal role in advancing India's maritime economy under the Sagarmala initiative. PTI CORR HVA

Offshore mining licence enables sand reclamation for greenfield port development with environmental and cost benefits. A ten-year mining licence under the offshore mineral regulatory framework authorises dredging of sand from a designated offshore area, following geotechnical studies including borehole testing that confirmed suitability, to create the reclaimed hectares necessary for construction of a greenfield port.