Gujarat Government Greenlights Special Purpose Vehicle for Port Development
The Gujarat state government has taken a significant step toward enhancing its maritime infrastructure. The state's ports and transport department issued a formal memorandum on December 31, 2025, announcing the government's in-principle approval for establishing a Special Purpose Vehicle (SPV). This new entity will be responsible for the development, operation, and maintenance of ports owned and operated by the Gujarat Maritime Board (GMB).
Equity Structure and Financial Allocation
According to the official memorandum, the proposed SPV will have a clear equity structure. The Gujarat Maritime Board will hold a 51% stake in the venture, while the state government will contribute the remaining 49%. To support this initiative, the state budget for the fiscal year 2025-26 has already allocated Rs 50 crore. Government officials confirmed that this budgetary provision will count toward the state's equity contribution in the SPV.
Addressing Maintenance and Development Challenges
A senior officer familiar with the development highlighted the pressing issues facing GMB ports. Currently, nearly all ports directly under GMB's management are grappling with maintenance difficulties. Despite various administrative efforts, the board has struggled to achieve faster development of these facilities. Recognizing these challenges, the state government decided to form the SPV to kickstart a comprehensive redevelopment program for all GMB ports.
The government will provide funds from the state budget, and GMB will inject substantial resources from its own reserves. This collaborative financial approach aims to overcome existing hurdles and accelerate port modernization.
Operational Framework and Responsibilities
The SPV will function as the implementing agency under the overall supervision and control of the Gujarat Maritime Board. Importantly, all port assets and revenues will remain with GMB. The SPV, however, will have the authority to levy administrative fees for its activities. It will also undertake marine-related services and value-added operations, subject to approval by GMB.
Gujarat's Extensive Port Network
The Gujarat Maritime Board manages an impressive network of 48 non-major ports across the state. These ports are organized into 10 major clusters:
- Magdalla
- Bharuch (Dahej)
- Bhavnagar
- Jafrabad
- Veraval
- Porbandar
- Okha
- Jamnagar (Bedi/Sikka)
- Navlakhi
- Mandvi
Key individual ports within this network include Alang, known for ship recycling, along with Mundra, Pipavav, Hazira, and Tuna. Some of these ports operate under private management but remain within GMB's overall regulatory framework. Their activities focus on crucial areas like cargo handling, liquefied natural gas (LNG) operations, and shipbuilding.
This strategic move to establish an SPV reflects Gujarat's commitment to strengthening its maritime sector. By creating a dedicated entity for port development, the state aims to improve efficiency, address maintenance backlogs, and enhance the overall competitiveness of its port infrastructure.
