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Jawaharlal Nehru Port Authority (JNPA) has revised the land acquisition cost for the Vadhvan port connectivity project in Maharashtra to about INR 2,300 crore, up from the earlier estimate of around INR 800 crore. The increase is due to higher guideline rates and recent land transactions in Palghar district. A total of 606 hectares across 24 villages is being acquired for road and rail links. Compensation is being paid at double the market value, along with statutory benefits under the land acquisition law.
Jawaharlal Nehru Port Authority (JNPA), which is implementing the Vadhvan port project in Palghar district of Maharashtra, has significantly increased its land acquisition outlay for building road and rail connectivity to the proposed port. The cost has now been estimated at around INR 2,300 crore, compared to the earlier projection of nearly INR 800 crore. Advertisement
The revision follows changes in guideline rates and higher land values reflected in recent transactions in the region. When the initial estimate was prepared, there were limited comparable land deals available, and older rates were considered. Since then, land prices have moved up due to policy revisions and growing expectations around the port-led development in the area.
The acquisition covers 606 hectares spread across 24 villages in Palghar district. Of this, nearly 40 per cent of the land, located closer to the shoreline and the port site, is being acquired at about INR 2.20 crore per hectare. The remaining 60 per cent, situated further inland, has been priced at approximately INR 62.5 lakh per hectare. The compensation award has been issued by the Palghar district collector.
Project-affected persons are being paid double the assessed market value of their land. In addition, they are entitled to a 100 per cent solatium and an extra 12 per cent amount calculated from late August last year, as provided under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. These statutory additions have also contributed to the overall rise in the acquisition cost.
Officials indicated that securing land for connectivity is a necessary step before major construction activities at the port site can proceed. Key works such as offshore reclamation, dredging and construction of breakwaters will depend on timely access and movement of materials. Establishing road and rail links at an early stage is also expected to reduce execution risks and help in obtaining more competitive bids from contractors.
People in the affected villages have reportedly been more receptive to the revised compensation, especially when compared with payouts seen in earlier large infrastructure projects in the region, including the Dedicated Freight Corridor and the Mumbai-Ahmedabad high-speed rail project. However, the higher land cost is expected to have some impact on the project's internal rate of return.
Vadhvan port is planned as a major deep-draft port on India's western coast and is being positioned to handle large container vessels. The increase in upfront land cost reflects the scale and long-term nature of the project, which requires extensive supporting infrastructure beyond the core port area.
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