Port Power Expands: Paradip, Odisha Maritime Board, Sagarmala Join Forces For Rs 21,500 Crore Bahuda Satellite Port

In a landmark move to bolster India’s maritime infrastructure, Paradip Port Authority, Odisha Maritime Board, and Sagarmala Finance Corporation Limited have signed a Memorandum of Understanding to develop a new all-weather satellite port at Bahuda Muhana in Ganjam district, Odisha. The MoU, inked on September 20, 2025, is part of the Maritime India Vision 2030 and the PM Gati Shakti National Master Plan, and is expected to significantly enhance trade connectivity, reduce logistics costs, and stimulate regional industrialization.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal presided over the signing ceremony, underscoring the strategic importance of the project for eastern India’s economic development.

Key Highlights From The Bahuda Port Agreement

- The proposed Bahuda Port will be developed as a satellite port of Paradip  
- Estimated investment stands at Rs 21,500 crore, with a planned capacity of 150 million tonnes per annum  
- The port will feature four docks, a sea gate, and dedicated zones for port-led industrialization  
- Paradip Port Authority will lead the joint venture, leveraging its operational expertise  
- Initial land surveys are complete; DPR consultancy work to be awarded within a week  

Strategic Location And Regional Impact

Bahuda Muhana, located in southern Odisha, offers proximity to North Coastal Andhra Pradesh and parts of Chhattisgarh. The satellite port is expected to serve as a critical node in India’s east coast logistics chain, complementing Paradip Port’s existing operations. By operating in tandem, Paradip and Bahuda will create a dual-port ecosystem that enhances throughput, diversifies cargo handling, and supports both EXIM and coastal shipping.

The project is designed to reduce congestion at Paradip and provide exporters and importers with faster, more cost-effective access to global markets. It will also support the development of port-adjacent industrial clusters, including steel, petrochemicals, and agro-processing.

Infrastructure And Operational Blueprint

The Bahuda Port will be built as a Greenfield facility with the following features:

- Four deep-draft docks capable of handling bulk, container, and liquid cargo  
- Integrated logistics corridors connecting the port to national highways and railways  
- Port-led industrial zones with earmarked land for manufacturing and warehousing  
- Sea gate access for large vessels and transshipment operations  
- Environmental safeguards and disaster-resilient design  

Paradip Port Authority Chairman P L Haranadh confirmed that geographical survey rights have been secured and Bahuda will be notified as a major satellite port. The port will be operated under the same regulatory framework as Paradip, ensuring consistency in governance and service standards.

Collaborative Financing And Expansion Plans

Sagarmala Finance Corporation will play a key role in structuring the financial model, pooling resources from public and private stakeholders. The Odisha Maritime Board will facilitate land acquisition, regulatory clearances, and local engagement.

Once land allotment from Andhra Pradesh is finalized, Visakhapatnam Port may also be brought in as a strategic partner, expanding the regional footprint and enabling cross-state industrial synergies.

Economic And Employment Potential

The Bahuda Port is projected to generate thousands of direct and indirect jobs across construction, logistics, and industrial sectors. It will also support skill development initiatives in collaboration with local institutions and maritime academies.

The port’s development aligns with India’s ambition to become a global maritime hub, and its success could serve as a blueprint for similar satellite port models in other coastal states.

Looking Ahead

With the MoU signed and groundwork underway, Bahuda Port is poised to become a transformative infrastructure asset for eastern India. As Paradip and Bahuda operate in synergy, they will not only boost cargo capacity but also catalyze industrial growth, regional connectivity, and economic resilience.

Sources: The Statesman, UNI India.