India Sanctions Funding for Kolkata Port Maintenance Dredging
India’s Finance Ministry has sanctioned INR 4.31 billion (approximately US$45 million) in central funding for maintenance dredging operations by the Syama Prasad Mookerjee Port Authority (SMPA) in Kolkata for the financial years 2024-25 and 2025-26. The approval was formalized in an office memorandum released by the Department of Expenditure on October 22, 2026.
The total cost of the dredging work over these two years amounts to INR 7.64 billion (around US$80 million). Consequently, the SMPA is responsible for covering the remaining INR 3.34 billion (approximately US$35 million). The dredging will focus on the Hooghly River and the navigation channels that serve both the Kolkata Dock System (KDS) and Haldia Dock Complex (HDC). SMPA oversees about 232 kilometers of channels leading to KDS and 125 kilometers toward HDC, both of which are affected by ongoing siltation.
Starting from the fiscal year 2026-27, central assistance will be contingent on the port meeting specific annual performance indicators. These metrics include the volume of cargo managed by operators engaged in public-private partnerships, berth mechanization, overall cargo traffic, and pre-tax net surplus. Notably, the dredging subsidy will not be included in these evaluations. SMPA reported that it successfully met its performance targets for FY2025-26.
