A new era for maritime trade: HUDCO to fund six port projects HUDCO investment set to accelerate port modernization
MoUs were executed with Syama Prasad Mookerjee Port, Kolkata, Visakhapatnam Port Authority, Paradip Port Authority, Odisha, Jawaharlal Nehru Port Authority (Mumbai), Mumbai Port Authority and Sagarmala Finance Corporation Limited, marking a major milestone in HUDCO’s efforts to expand its financing portfolio into maritime and coastal infrastructure.
The Housing and Urban Development Corporation Ltd. (HUDCO), a Navratna NBFC-IFC, has signed six Memoranda of Understanding (MoUs) with major port authorities, during the ongoing Maritime Week 2025 at Mumbai, to finance projects worth Rs. 1.1 lakh crore in India’s port infrastructure sector, over the next decade. This landmark initiative is in alignment with the vision of the Hon’ble Prime Minister to promote port-led development and harness the potential of India’s coastline and waterways.
Speaking on the occasion, Mr. Sanjay Kulshrestha, CMD, HUDCO, said “HUDCO’s entry into port financing marks a new chapter in our growth journey. Through these strategic collaborations, we aim to channel Rs. 1.1 lakh crore into India’s maritime infrastructure to support the Sagarmala Programme and Maritime Amrit Kaal Vision 2047, both aimed at transforming India into a global maritime hub.”
India’s port sector is undergoing a major transformation, driven by modernization, capacity expansion, and improved efficiency. Operational efficiency has seen a significant boost, with the average vessel turnaround time reduced by nearly half, underscoring India’s emergence as a competitive player in global maritime logistics. HUDCO’s entry into port financing comes at a strategic juncture when the Maritime India Vision 2030 envisages Rs. 3–3.5 lakh crore of investments across ports, shipping, and inland waterways. The government’s initiatives such as the Rs. 25,000 crore Maritime Development Fund (MDF), Rs. 24,736 crore Shipbuilding Financial Assistance Scheme (SBFAS), and Rs. 19,989 crore Shipbuilding Development Scheme (SbDS), aim to strengthen port-led growth, enhance shipbuilding capacity, and promote sustainable maritime infrastructure.
As part of this initiative, HUDCO has entered into partnerships with key port authorities and institutions to unlock large-scale investment opportunities across India’s maritime landscape:
- Sagarmala Finance Corporation Ltd. (SFCL): HUDCO and SFCL will jointly extend up to Rs. 80,000 crore over the next decade to eligible public and private projects under the Sagarmala Programme, focused on enhancing port-led development and reducing logistics costs.
- Jawaharlal Nehru Port Authority (JNPA): An MoU for Rs. 5,000 crore has been signed to support refinancing of existing terminals, financing of re-awarded PPP projects, and upcoming expansion initiatives.
- Vadhvan Port Project Ltd. (VPPL): HUDCO signed an MoU on January 21, 2025, to provide up to Rs. 25,000 crore in financing support for the development of India’s 13th major port — the greenfield Vadhvan Port, envisioned as a future gateway for global trade.
- Mumbai Port Authority (MbPA): The MoU focuses on the planning, financing, and execution of a Maritime Iconic Structure in Mumbai, a landmark business and tourism hub celebrating India’s maritime heritage.
- Visakhapatnam Port Authority (VPA): An MoU worth Rs. 487 crore aims at mechanization of berths, modernization under PPP mode, and operation and maintenance of liquid cargo facilities.
- Paradip Port Authority (PPA): A Rs. 5,100 crore MoU has been signed to finance berth mechanization, new dock complexes, and container terminals, supporting PPA’s expansion to a 400 MMT capacity by 2030.
- Syama Prasad Mookerjee Port, Kolkata (SMP-Kolkata): An MoU worth Rs. 3,000 crore will fund reconstruction and mechanization of berths, container terminals, and liquid cargo jetties under PPP models to strengthen eastern India’s maritime connectivity.
HUDCO has also recorded exceptional financial performance in recent years. In FY2024–25, the corporation achieved its highest-ever net profit of Rs. 2,709 crore, reflecting a 28% year-on-year increase, alongside 32.46% growth in revenue from operations. The loan book expanded by 34.72%, reaching Rs. 1,24,828 crore, supported by prudent financial management and strategic diversification into new infrastructure sectors.
With this initiative, HUDCO cements its position as a key enabler of India’s maritime and infrastructure transformation—anchoring growth, connectivity, and global competitiveness along the nation’s vast coastline.
