Adani Ports & Special Economic Zone Ltd (APSEZ), led by Gautam Adani, has received environmental and coastal regulation zone approval from the Centre to more than double the capacity of its flagship port in Mundra to 514 million tonnes, with an investment of ₹45,000 crore.

This could strengthen APSEZ's case as it seeks a rollover from the Gujarat government on the port's concession period, which expires in 2031 after 30 years.

The port in Gujarat's Kutch district currently has a design capacity and environmental and coastal regulation zone approval to handle 225 mt of cargo per year, including 9.5 million twenty-foot equivalent units (TEUs), a container standard.

Mundra - India's biggest commercial port as well as the country's top container port by volumes handled - managed 179.6 mt of cargo, including 7.4 million TEUs, in fiscal 2024, accounting for more than a fourth of all cargo volumes and over a third of container cargo in India.

APSEZ expects to exceed 200 mt of cargo handling in FY25, according to its volume guidance for the fiscal year that began in April. This makes it the country's first port to accomplish this feat.

Globally, capacity utilisation of 70% is regarded as the ideal level for ports/terminals to operate efficiently while avoiding congestion and productivity issues. "At 70% capacity utilisation, the terminal operates at peak efficiency. Above that, efficiency declines and delays begin," said a port industry insider.

With the port growing by double digits in recent years and on track to reach full rated capacity soon, APSEZ applied to the Expert Appraisal Committee (EAC) attached to the Ministry of Environment, Forest and Climate Change to increase capacity by 289 mt to 514 mt as part of the expansion of the Waterfront Development Plan spread across 3,335 hectares at Mundra Port. The capacity expansion will accommodate multi-purpose, liquid, gas, and cryogenic cargo.

"The EAC, after examining the documents submitted by the project proponent (APSEZ) and detailed deliberations held on 15 May 2024, recommended the proposal for environment and CRZ clearance," according to the committee meeting minutes obtained by ET.