Essar Ports Secures Letter of Award for Kandla Terminal
Essar Ports has won a Letter of Award (LoA) for the Rs 2,276 crore Tuna Tekra terminal project at Kandla port, according to reports from five outlets published on 21 October 2026. The contract marks the company's return to the maritime sector, as noted by multiple publications.
The project is located at Tuna Tekra, within the Kandla port area in Gujarat. Moneycontrol described the win as Essar Ports betting on port infrastructure revival, while ET Infra specifically confirmed the issuance of a Letter of Award. All five outlets were consistent on the contract value of Rs 2,276 crore and the Kandla location.
| Detail | Information |
|---|---|
| Project | Tuna Tekra Terminal Project |
| Promoter / Contractor | Essar Ports |
| Location | Tuna Tekra, Kandla, Gujarat |
| Contract Value | Rs 2,276 crore |
| Award Type | Letter of Award (LoA) |
| Reported | 21 October 2026 |
Essar Ports' Existing Footprint in Gujarat
Projects India already tracks two other projects associated with Essar Ports in Gujarat. These include an Isolated LPG Storage Project at Khambhalia Village, Jamnagar, valued at Rs 430 crore, and a Ports Project at Dwarka, Jamnagar, valued at Rs 10,000 crore. The Kandla LoA adds a third significant capital commitment by the promoter in the state. Gujarat accounts for 110 of the 652 shipping infrastructure projects tracked nationally by Projects India, making it the second most active state in the sub-sector after Maharashtra.
Gujarat's Role in India's Shipping Infrastructure Pipeline
Gujarat's position in the national shipping infrastructure pipeline reflects the state's long coastline and the concentration of major port assets. Of the 652 shipping infrastructure projects tracked by Projects India, Maharashtra leads with 178, followed by Gujarat at 110, Tamil Nadu at 95, Andhra Pradesh at 67, West Bengal at 48 and Kerala at 44.
Recent projects tracked in Gujarat include a Captive Salt Jetty and Associated Infrastructure Project at Lakhpat, Kachchh, valued at Rs 238.2 crore and currently under approvals, as well as the Jetty and Storage Terminal expansion at Dahej, Bharuch, valued at Rs 1,200 crore, where construction has started. The Kandla area has also seen related activity: a Rs 2,300 crore e-methanol plant at Kandla Port had its foundation laid recently, reflecting broader capital investment at the port complex.
Stage Breakdown: Where the National Pipeline Stands
Across India's 652 tracked shipping infrastructure projects, the largest cohort — 368 projects — remains at the Under Approvals stage, indicating a substantial volume of work that has not yet reached procurement or construction. A further 120 projects are at the Planning stage. Construction has started on 107 projects, while 22 are at an Early or Announced stage. Only 12 have received approvals without yet commencing construction, and 13 are recorded as completed.
This distribution underlines that the pipeline is heavily front-loaded: suppliers and contractors who engage early, at the approvals and planning stages, have the greatest opportunity to position themselves ahead of procurement. For context on the broader infrastructure projects sector in India, the shipping sub-sector represents an active and geographically dispersed opportunity set.
What this means for suppliers and contractors
The Essar Ports LoA at Kandla represents a Rs 2,276 crore construction commitment in Gujarat, a state that already hosts 110 tracked shipping infrastructure projects. For civil contractors, marine equipment suppliers, dredging firms and port materials providers, the issuance of a Letter of Award is a strong signal that procurement activity for this terminal will follow in the near term.
Gujarat's pipeline more broadly includes projects at multiple stages. The Dahej terminal expansion, at Rs 1,200 crore, has already entered construction, meaning procurement at that project is active. The Lakhpat salt jetty at Rs 238.2 crore is still under approvals, offering an earlier entry point for suppliers seeking to build relationships with that promoter.
Nationally, with 368 projects under approvals and 120 in planning, the shipping infrastructure sub-sector offers a wide advance-stage pipeline for suppliers who monitor project progress systematically. Firms tracking Gujarat and Maharashtra — the two most active states — will find the highest concentration of near-term opportunities. Contractors already active in port civil works in western India are best placed to respond quickly to procurement notices arising from the Kandla terminal award. All tracked projects across sectors can be monitored for stage changes as approvals convert to construction starts.
Frequently asked questions
What is the Tuna Tekra terminal project at Kandla?
The Tuna Tekra terminal project is a port infrastructure development at Kandla, Gujarat. Essar Ports was reported on 21 October 2026 to have received a Letter of Award for the project, which is valued at Rs 2,276 crore.
How much is the Essar Ports Kandla terminal contract worth?
The contract is valued at Rs 2,276 crore. This figure was consistently reported across all five outlets that covered the story on 21 October 2026, including ET Infra, Moneycontrol, Rediff and The Week.
How many shipping infrastructure projects are tracked in Gujarat?
Projects India tracks 110 shipping infrastructure projects in Gujarat, making it the second most active state in this sub-sector nationally, behind Maharashtra which has 178 tracked projects.
What stage are most shipping infrastructure projects at in India?
Of 652 shipping infrastructure projects tracked by Projects India, 368 are at the Under Approvals stage, 120 are in Planning, and 107 have started construction. Only 13 are recorded as completed.
