India to develop new major port at Bahuda, Odisha with Rs 215 billion investment

By Admin

20 Sep, 2025

India is set to boost its maritime infrastructure with the development of a new major port at Bahuda in Odisha’s Ganjam district. This ambitious project, estimated at Rs 215 billion, is a collaboration between Paradip Port Authority, Visakhapatnam Port Authority, Sagarmala Finance Corporation Ltd, and the Odisha government. Once completed, it will become the 14th major port under the ownership of the Union government, reinforcing India’s strategic maritime footprint.

Strategic Capabilities of Bahuda Port
The proposed Bahuda port is designed to handle dry bulk ships ranging from 40,000 to 150,000 deadweight tonnes and container vessels with capacities of up to 6,000 TEUs. This development aims to enhance shipping capabilities in the region, paving the way for efficient trade and port-led industrialization along Odisha’s coastline. A comprehensive Pre-Techno Economic Feasibility Study conducted by the Odisha government highlighted the port’s critical role in boosting regional commerce and economic growth.

Formalizing the Collaboration
A memorandum of understanding (MoU) for the port development is scheduled to be signed on September 20 in Bhavnagar, Gujarat, in the presence of Prime Minister Narendra Modi. This MoU will officially formalize the collaboration between the key stakeholders Paradip and Visakhapatnam port authorities, Sagarmala Finance Corporation Ltd, and the Odisha government ensuring a unified approach to project execution.

Funding Support and Infrastructure Development
Sagarmala Finance Corporation Ltd, a Reserve Bank of India-registered non-banking financial company dedicated to maritime sector development, will provide critical funding. The corporation plans to extend short-term, medium-term, and long-term loans to support port modernization, connectivity enhancement, coastal community development, and other related infrastructure projects.

Impact on Regional Trade and Industry
The Bahuda port is expected to significantly boost port-led growth in eastern India. Improved transport connectivity through road and rail links will facilitate efficient cargo movement, while industrial development along Odisha’s coastline will receive a major impetus.

Eastern India already hosts several major and private ports, including Paradip, Dhamra, and Gopalpur. Private players like Adani Ports and Special Economic Zone Ltd (APSEZ) operate at Dhamra and Gopalpur, Tata Steel Ltd is developing a port at Subarnarekha Mouth (Kirtania), and Navayuga Engineering Company Ltd is working on a port at Astaranga. The addition of Bahuda port will complement these existing facilities, further strengthening India’s maritime capabilities.

Strengthening India’s Maritime Future
The Bahuda port project underscores India’s commitment to enhancing its shipping infrastructure and economic prospects. By reinforcing regional trade and industrial development, the new port will consolidate India’s position as a key player in global maritime commerce. This strategic initiative marks another milestone in the country’s journey toward becoming a leading maritime and trade hub.