Mumbai’s NMDC Dredging Joins Tata Steel To Revive Stalled Subarnarekha Port Project

A key turn in India’s port development landscape could be unfolding as NMDC Dredging & Marine (NDM) considers acquiring equity in Subarnarekha Port Pvt Ltd, designed to support Tata Steel Ltd’s captive logistics needs. The move, announced during India Maritime Week in Mumbai, could breathe life into what has become one of the country’s longest-delayed green-field port projects.

 A key development in India’s maritime infrastructure may soon unfold as NMDC Dredging & Marine (NDM) considers taking an equity stake in Subarnarekha Port Pvt Ltd, a long-delayed project led by Tata Steel. The potential partnership could finally breathe life into the Odisha-based deep-water port, which has remained dormant for over a decade.The 31-million-tonnes-per-annum capacity port at Chaumukh village in Balasore district was awarded a 30-year concession in 2008, with an option to extend for another 20 years. Despite the ambitious plan, construction never took off, making it one of India’s most delayed port projects.

In 2017, Tata Steel acquired a 51 per cent stake in Subarnarekha Port Pvt Ltd from Creative Port Development Pvt Ltd to serve its 10-million-tonne Jamshedpur steel plant. NMDC Dredging’s proposed entry, both as an investor and as an engineering, procurement, and construction (EPC) contractor, could change the project’s trajectory. The EPC component alone is valued at approximately ₹4,000 crore.The project design includes a 34.6 km navigational channel, two breakwaters totalling more than 6 km, and reclamation works of 14 million cubic metres to create four berths with a 1,060-metre quay. The total cost is expected to exceed ₹12,000–13,000 crore. “We are exploring the possibility of taking an equity stake and trying to pull the project forward,” said the company’s chief executive during the India Maritime Week in Mumbai.

For Odisha, reviving the Subarnarekha Port could provide a much-needed boost to regional logistics, employment, and trade capacity. A senior state government official confirmed that the project “is now gaining traction” and could complement the state’s efforts to strengthen its coastal infrastructure.However, challenges remain. The environmental clearance granted in 2012 expired in March 2024, requiring a fresh approval process. Additionally, with Tata Steel estimating total costs above ₹12,000 crore, questions persist about financial viability  especially since the port primarily serves Tata Steel’s cargo rather than catering to wider hinterland trade. To manage costs, Tata Steel is reportedly evaluating reducing the channel depth from 18 to 14.5 metres, suitable for smaller vessels.

At an estimated debt-equity ratio of 70:30, the project would require ₹3,000–4,000 crore in equity, of which Creative Port Development must contribute around ₹1,500 crore. NMDC Dredging’s participation could bridge this gap, bringing both financial and technical expertise.If realised, the Subarnarekha Port could become a cornerstone for sustainable coastal logistics, promoting cleaner supply chains and regional economic resilience. Yet, its success will depend on transparent execution, regulatory efficiency, and long-term environmental stewardship  all vital for building sustainable, inclusive maritime infrastructure in India’s next phase of growth.

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Mumbai’s NMDC Dredging Joins Tata Steel To Revive Stalled Subarnarekha Port Project