Adani Group Announces $48 Billion Investment for Mundra Port Expansion
Major Developments on the Horizon
Adani Group has committed to an investment of approximately $48 billion (Rs. 4-lakh crore) for both ongoing and upcoming projects over the next six years at Mundra in Gujarat's Kutch region. The initiative includes the establishment of a berth for copper ore, a copper smelter plant, a green hydrogen project, and renewable energy ventures, as detailed by a senior company official. Notably, there are no expansive plans for the power sector at the moment.
Adani's prior investments in Mundra amount to roughly $8.4 billion (Rs. 70,000 crore). On the port's 25th anniversary, the group disclosed that Mundra port has furnished more than $27 billion (Rs. 2.25-lakh crore) to both State and National treasuries in its operational duration.
Mundra Port: A Remarkable Journey
From unutilized land 25 years ago, Mundra port has evolved into India's top commercial port. From handling a meager amount in 1998, the port impressively processed 100 million tonnes (mt) by 2014, setting a precedent for Indian ports.
Role as an EXIM Gateway
Currently, Mundra oversees over 155 mt, constituting nearly 11% of India's maritime cargo. As a significant EXIM gateway, Mundra directs 33% of India's container traffic. To accommodate the growing demand, the port plans to extend its container terminals by nearly 1 km, introducing three more berths. Also on the agenda is a VLCC (very large crude carrier) berth, aimed to be functional by the end of this year or the next March quarter. Presently, the port relies on a single buoy mooring to manage operations for the Indian Oil Corporation and HPCL-Mittal Energy Ltd. This expansion foresees a doubling of the port's capacity, leading to an uptick in its workforce from 25,000 to around 60,000 individuals.
Copper Initiatives
With a new berth being developed for copper ore, the copper smelter plant's construction is progressing smoothly, with plans to be operational in the coming fiscal year. Kutch Copper Ltd is spearheading a greenfield copper refinery project, set to produce refined copper. With a projected cost of around $104.4 million (Rs. 8,700 crore), this venture is expected to begin production next fiscal year. Given the shutdown of Vedanta's plant in Thoothukudi for environmental reasons, this new establishment may address the increasing domestic copper demand.
The commencement of the petrochemical park project is notable, with its completion anticipated within five years.
