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Work begins on INR 1,200 crore e-methanol plant at Kandla Port

#Infrastructure News#Industrial#India#Gujarat
Last Updated : 28th Feb, 2026
Synopsis

Groundwork has started for a INR 1,200 crore e-methanol plant at Kandla Port in Gujarat, marking India's first port-based facility of this kind. The project is being developed by Assam Petro-Chemicals Limited in partnership with Deendayal Port Authority. The proposed unit will have a capacity of 150 tonnes per day and will come up on 150 acres of allotted land. The plant is expected to generate around 3,500 direct and indirect jobs and support the use of cleaner fuels in shipping and industry.

Work has formally begun on India's first port-based e-methanol production facility at Kandla Port in Gujarat. The project, with an estimated investment of INR 1,200 crore, is being developed by Assam Petro-Chemicals Limited in collaboration with Deendayal Port Authority.


Officials from both sides recently installed the project signboard on the 150-acre land parcel allotted for the plant, marking the start of on-ground development. The initiative follows a memorandum of understanding signed earlier this year in the presence of senior state and Union government representatives.

The proposed plant will have a production capacity of 150 tonnes per day of e-methanol. As part of the agreement, the port authority will provide supporting infrastructure such as storage, pipeline connectivity and handling systems within the port area. Assam Petro-Chemicals Limited will be responsible for setting up and operating the production facility.

E-methanol is considered a cleaner alternative fuel that can help reduce carbon emissions, especially in sectors such as shipping where electrification remains limited. Locating the unit within a major port is expected to improve logistics efficiency and reduce transport costs for fuel supply.

The project is also expected to generate around 3,500 employment opportunities, both direct and indirect, during construction and operations. It aligns with the Centre's broader push to promote green fuels, reduce dependence on conventional fossil fuels and develop sustainable port infrastructure.

In recent years, Deendayal Port Authority has taken steps to support clean energy initiatives within its premises, including projects linked to green hydrogen and renewable energy. The e-methanol plant adds to these efforts and positions Kandla as an emerging hub for alternative marine fuels.

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