Union Minister Approves Major Agricultural Processing and Storage Facility at JNPA
Team Finance Saathi
29/Jul/2024

Key Points
Union Minister Sarbananda Sonowal approves a $34 million project at JNPA for agricultural processing and storage.
The facility aims to streamline logistics, extend the shelf life of agricultural products, and create jobs.
Vadhavan Port development in Maharashtra is set to become one of the world's top 10 largest ports with a $9.11 billion investment.
In a significant move to bolster India’s agricultural sector and enhance logistics efficiency, Union Minister for Ports, Shipping, and Waterways, Mr. Sarbananda Sonowal, has given the green light to a transformative project at the Jawaharlal Nehru Port Authority (JNPA). The approved project, valued at US$ 34 million (approximately Rs. 284.19 crore), will establish an 'Export-Import cum Domestic Agricultural Commodity-Based Processing & Storage Facility' under a Public-Private Partnership (PPP) model. This facility is set to cover an expansive area of 67,422 square meters and is strategically designed to address several key challenges in agricultural logistics and export.
Facility Features and Benefits
The newly sanctioned facility is poised to revolutionize the handling and processing of agricultural products. With a focus on streamlining logistics and reducing handling stages, the project will significantly extend the shelf life of agricultural goods. This will not only enhance the pricing and value of products like non-basmati rice, maize, spices, onions, and wheat but also support meat and marine product exporters outside Mumbai.
The facility will include several state-of-the-art storage solutions:
A frozen store with a capacity of 1,800 metric tonnes.
A cold store capable of holding 5,800 metric tonnes.
Dry warehouses with a total capacity of 12,000 metric tonnes for grains, cereals, and dry cargo.
These features are designed to optimize the storage and export processes, making it easier to manage large volumes of agricultural products and improve their market competitiveness.
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Socio-Economic Impact
The development of this facility is expected to have a profound impact on rural development and employment in the region. By creating new job opportunities and improving the logistics infrastructure for agricultural exports, the project will support farmers and exporters alike. The enhanced capability to handle and process agricultural goods efficiently will foster growth in the sector, benefiting local communities and contributing to overall economic development.
Broader Port Development Initiatives in Maharashtra
This project is part of a larger vision to enhance port infrastructure in Maharashtra, with JNPA already recognized as the country’s first major port operating entirely on a PPP model. In addition to the agricultural facility, Maharashtra is witnessing other significant developments in its port sector. Notably, the Vadhavan Port project, with an investment of US$ 9.11 billion (Rs. 76,220 crore), is set to emerge as a major Greenfield deep draft port. The port is designed to handle 23 million TEUs (Twenty-foot Equivalent Units) or 254 million tons of cargo annually, featuring a 20-meter natural draft to accommodate larger vessels.
This ambitious project aims to rank among the world’s top 10 largest ports and serve as a crucial green fuel hub, further reinforcing Maharashtra’s position as a key player in global trade.
Sagarmala Scheme Contributions
The Ministry of Ports, Shipping, and Waterways (MoPSW) has played a pivotal role in advancing these port developments. Under the Sagarmala Scheme, MoPSW has completed 16 projects in Maharashtra, valued at US$ 94.4 million (Rs. 790 crore), with US$ 27.7 million (Rs. 232 crore) allocated from the scheme. Currently, the ministry is working on 14 additional projects worth US$ 133.2 million (Rs. 1,115 crore), with US$ 67 million (Rs. 561 crore) in assistance from the Sagarmala Scheme. These projects collectively aim to enhance port infrastructure, boost maritime trade, and support economic growth in the region.
In conclusion, the approval of the new agricultural processing and storage facility at JNPA marks a significant milestone in India’s port development and agricultural logistics. With its comprehensive features and anticipated benefits, this project will not only improve export efficiency but also contribute to the broader goals of rural development and economic growth in Maharashtra.
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