PIB Approves ₹1,839-Crore Dredging Support for Syama Prasad Mookerjee Port Authority Till 2031

Main Article
Tue, Nov 18, 01:39 AM IST

In a major development for Eastern India’s maritime sector, the Public Investment Board (PIB) has approved the extension of a ₹1,839.41-crore dredging subsidy for the Syama Prasad Mookerjee Port Authority (SMPA) for seven years, starting FY25 and continuing till FY31. This support is vital for maintaining the Hooghly River’s complex 232 km navigational channel, one of the longest and most challenging riverine channels in the world.

 

Ensuring Navigability in a Difficult River System

 

The Hooghly River’s constantly shifting silt patterns require continuous and high-frequency dredging. SMPA must maintain safe depth levels for vessels accessing the Kolkata Dock System (KDS) and Haldia Dock Complex (HDC).


The port’s dredging expenditure is estimated at ₹3,765.45 crore for the next seven years, making government support essential during this transition phase.

 

Legacy Liabilities and Modernisation

 

Although SMPA has made progress toward financial stability, with surplus earnings, land monetisation efforts, and new mechanisation projects legacy liabilities of the 155-year-old port continue to limit its ability to fully self-fund dredging operations.


The PIB’s approval acknowledges both the progress and the constraints, recommending continued assistance until SMPA completes its modernisation cycle.

 

A Push Towards Efficiency and PPP-Driven Growth

 

The port authority is undertaking major upgrades through the Public-Private Partnership (PPP) model. By 2030, SMPA aims to achieve:

 

  • 75% mechanisation of berths
  • 85% mechanisation of cargo handling
  • Cargo capacity expansion from 87.5 MMT to 115 MMT

 

The PIB has emphasised that the success of these PPP projects is directly linked to the port’s ability to maintain navigable depths—making dredging support a critical enabler.

 

A Strategic Gateway for Eastern India and Neighbouring Nations

 

The Syama Prasad Mookerjee Port serves a vast hinterland across Eastern India. It plays a vital role in:

 

  • Connectivity to National Waterways-1 & 2
  • Facilitating movement through the India-Bangladesh Protocol Route
  • Supporting trade for Nepal and Bhutan, both of which rely heavily on the port’s infrastructure
  • Ensuring smooth navigation through the Hooghly channel is essential for cost-efficient imports and exports, reduction in dead freight, and improved turnaround times.

 

A Step Toward Long-Term Self-Sustenance

 

Government assistance for dredging has been declining over the years, with the port gradually moving toward financial independence. The latest subsidy extension is expected to bridge the final phase of this shift, allowing time for mechanisation, asset monetisation, and operational efficiency improvements to take full effect.

 

Conclusion

 

The PIB’s approval is a timely boost for Syama Prasad Mookerjee Port Authority, reinforcing the port’s role as a critical economic engine for Kolkata, Haldia and the wider Eastern Indian region. As SMPA continues on its path of modernisation and increased capacity, consistent dredging support will ensure the port remains competitive, efficient and future-ready.