India has taken a major step toward becoming a global supplier of green marine fuel with the foundation stone laid for the country’s first port-based e-methanol production facility at Deendayal Port Authority (DPA) in Kandla.

 

The Rs. 2,300-crore project, a joint initiative of DPA and Assam Petro-Chemicals Ltd. (APCL), will produce up to 150 tonnes of e-methanol a day using renewable power, water and biogenic CO2. The fuel will be supplied to ships operating along the Asia-Europe International Trade Corridor.

 

Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma laid the foundation stone at a ceremony in Gandhidham.

 

The project is expected to strengthen India’s position in the emerging global green-fuel market. The facility is projected to produce e-methanol at around US$750 per tonne, significantly below the stated global rate of about US$1,300 per tonne.

 

The facility will be developed in two phases.

 

The first phase will add 50 tonnes per day of capacity at an investment of Rs. 1,200 crore and is targeted for completion by January 2027. The second phase will add another 100 tonnes per day at an investment of Rs. 1,100 crore, with completion targeted for March 2027.

 

DPA will hold a 76% capital contribution in the project, with APCL holding 24%. DPA’s contribution includes Rs. 567.32 crore in equity, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.

 

The project is expected to create more than 3,500 direct and indirect jobs and drive the development of a wider green-energy ecosystem around Kandla, including transportation, storage, supply and other associated services.

 

Bhupendra Patel said: "Under Prime Minister Narendra Modi’s leadership, India is growing faster and greener than ever, and Gujarat is proud to lead that journey. Kutch and the long coastline of Gujarat will now power the world's ships through Kandla. This plant turns our renewable strength into an export and makes Gujarat's coast a gateway for India's green energy to the world."

 

The project is being positioned as part of India’s broader push to expand its maritime and clean-energy capabilities, with the government targeting the addition of 100 new ships to the merchant fleet over the next five years and an ambition to make India one of the world’s top five ship-owning nations by 2047.

 

Sarbananda Sonowal said: "PM Narendra Modi has given India the confidence to lead, not follow," Sarbananda Sonowal said. "Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade. 

 

"In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant is a model for every major port in the country. It will open skilled careers for our youth and carry India firmly toward net zero by 2070 and in achieving the goals of VIKSIT BHARAT by 2047."

 

The Kandla project also brings together the industrial capabilities of Gujarat and Assam. APCL, based in Namrup in Assam, is Sonowal’s constituency-based enterprise partner in the project.

 

Himanta Biswa Sarma said: 'PM Narendra Modi has placed the Northeast at the heart of India's growth story, and Assam is repaying that trust with enterprise and ambition. Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India's clean energy future."

 

The project supports India’s stated goal of achieving net-zero emissions by 2070, while also aligning with the government’s Atmanirbhar Bharat and Make in India initiatives.

 

The development comes alongside a wider expansion of maritime infrastructure. A ₹1,520-crore DPA-Cochin Shipyard shipbuilding project at Vadinar is under way, while a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has received in-principle approval.

 

The e-methanol facility is expected to strengthen Kandla’s role not only as a major maritime gateway but also as a potential production and export hub for green fuels serving international shipping.