State-owned Power Finance Corporation (PFC) has pledged approximately ₹21,000 crore to support the development of Vadhavan Port, which is set to become India’s largest container port along the western coast. This significant investment follows the union cabinet’s recent approval of the ₹76,220-crore mega port project located in Palghar district, Maharashtra.
The Vadhavan Port Project Ltd, a special purpose vehicle (SPV) formed by the Jawaharlal Nehru Port Authority and the Maharashtra Maritime Board, will spearhead the development of the port. Prime Minister Narendra Modi is expected to visit Maharashtra on August 30 to lay the foundation stone for this major infrastructure project.
PFC, a non-banking financial company traditionally focused on power and renewable energy sectors, is diversifying its asset portfolio to include infrastructure projects like Vadhavan Port. This move aligns with the company’s strategy to expand its infrastructure lending business, creating sustainable revenue streams. As of June 30, PFC’s standalone loan book stood at ₹4.75 lakh crore, with the infrastructure sector accounting for 1.7% of the total, up from 0.24% a year earlier.
The Vadhavan Port project will involve the development of core infrastructure, terminals, and commercial facilities through a public-private partnership (PPP) model. The port will be well-connected by road and rail, including a dedicated rail freight corridor, and is expected to handle a total capacity of 298 million tons per year, with a container handling capacity of approximately 23.2 million twenty-foot equivalent units (TEUs).