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India's First Port-Based e-Methanol Plant Comes Up at Kandla

The foundation stone of India's first port-based e-methanol plant, a 2,300 crore rupee unit of 150 tonnes a day, was laid at Kandla port in Gujarat.

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India's First Port-Based e-Methanol Plant Comes Up at Kandla

Why in News

On 26 September 2026 the foundation stone of India's first port-based e-methanol production facility was laid at the Deendayal Port Authority in Kandla, Gujarat, by the Chief Ministers of Gujarat and Assam and the Union Minister of Ports, Shipping and Waterways.

India's first port-based e-methanol production facility will be built at the Deendayal Port Authority (DPA) in Kandla, Gandhidham, Gujarat. Its foundation stone was laid on 26 September 2026 at the DPA Exhibition Ground by Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Dr Himanta Biswa Sarma. The plant is meant to make India a seller of clean fuel to the world's shipping lines.

What the plant will produce

The facility will make 150 tonnes of e-methanol every day. Renewable electricity, water and carbon dioxide drawn from biological sources will be combined to produce the fuel, which lets ships burn something far cleaner than conventional bunker oil. The fuel will be sold to vessels sailing the Asia-Europe International Trade Corridor, among the busiest sea routes anywhere. Because of cheap renewable power and port-side supply, green methanol from Kandla is expected to cost only 750 US dollars a tonne, against a world price of about 1,300 US dollars a tonne.

Cost, phases and partners

  • Total investment: 2,300 crore rupees
  • Phase I: 50 tonnes a day for 1,200 crore rupees, to be ready by January 2027
  • Phase II: a further 100 tonnes a day for 1,100 crore rupees, targeted for March 2027
  • Partners: Deendayal Port Authority and Namrup-based Assam Petro-Chemicals Limited, sharing capital in the ratio 76:24
  • Jobs: more than 3,500 direct and indirect

The port authority is putting in equity of 567.32 crore rupees along with 75 acres of land, desalinated water and renewable energy supplied as green hydrogen. The unit will be built as scalable modules and will rank among the largest e-methanol works in the country. It is expected to pull in transport, storage and supply businesses around Kandla, creating a whole green-molecule value chain in Kutch.

Why it matters

The project supports the national promise of reaching net zero emissions by 2070 and the goal of a developed India by 2047. The government plans to add 100 new ships to the merchant fleet over the next five years and wants India among the world's top five ship-owning nations by 2047. Shipping major Maersk has begun ordering containers built in India. At the same port authority, a shipbuilding project with Cochin Shipyard Limited at Vadinar worth 1,520 crore rupees is under way, and a greenfield shipbuilding and repair cluster proposed at Kuchhadi in Porbandar has received in-principle approval. Mr Sonowal said Kandla would grow into a green-fuel hub on the Singapore-Rotterdam route and serve as a model for every major Indian port.

Important Facts

ProjectIndia's first port-based e-methanol production facility
LocationDeendayal Port Authority, Kandla, Gandhidham, Gujarat
Capacity150 tonnes of e-methanol a day
Investment2,300 crore rupees in two phases
PartnersDeendayal Port Authority and Assam Petro-Chemicals Limited (Namrup, Assam), capital ratio 76:24
Foundation stone laid byBhupendra Patel, Sarbananda Sonowal and Dr Himanta Biswa Sarma
Price of fuel750 US dollars a tonne against a global rate of about 1,300 US dollars
JobsMore than 3,500 direct and indirect
Date26 September 2026

Exam Point of View

Remember the first (India's first port-based e-methanol plant), the place (Deendayal Port Authority, Kandla, Gandhidham, Gujarat), the capacity (150 tonnes a day), the cost (2,300 crore rupees in two phases of 1,200 and 1,100 crore rupees), the partners (DPA and Assam Petro-Chemicals Limited, Namrup) and the price edge of 750 US dollars a tonne against 1,300 globally.

Practice Questions

Q1.EnvironmentEasy

India's first port-based e-methanol production facility is coming up at which port?

  1. A.Jawaharlal Nehru Port, Maharashtra
  2. B.Deendayal Port, Kandla, Gujarat
  3. C.Paradip Port, Odisha
  4. D.Cochin Port, Kerala
Show answer

Correct answer: B. Deendayal Port, Kandla, Gujarat

Explanation

The correct answer is Deendayal Port, Kandla, Gujarat. The foundation stone of the country's first port-based e-methanol plant was laid at the Deendayal Port Authority at Kandla in Gandhidham on 26 September 2026 by the Chief Ministers of Gujarat and Assam along with the Union Minister of Ports, Shipping and Waterways. The plant will make 150 tonnes of the green fuel a day for ships using the Asia-Europe International Trade Corridor. Option A, Jawaharlal Nehru Port, option C, Paradip Port, and option D, Cochin Port, are wrong because the plant announced on this day belongs to the Deendayal Port Authority alone; Cochin Shipyard Limited appears in the news only as the partner in a separate shipbuilding project at Vadinar worth 1,520 crore rupees. Candidates should tie the port to the state, Gujarat, and to the partner from Assam.

Q2.EnvironmentMedium

What is the total investment announced for the port-based e-methanol facility at Kandla?

  1. A.1,200 crore rupees
  2. B.1,520 crore rupees
  3. C.2,300 crore rupees
  4. D.3,500 crore rupees
Show answer

Correct answer: C. 2,300 crore rupees

Explanation

The correct answer is 2,300 crore rupees. The plant is being set up in two scalable phases: the first adds 50 tonnes a day at a cost of 1,200 crore rupees and is targeted for January 2027, while the second adds another 100 tonnes a day for 1,100 crore rupees by March 2027, taking the total to 2,300 crore rupees. Option A is only the first phase outlay, so it is incomplete. Option B is the value of the separate shipbuilding project of the port authority with Cochin Shipyard Limited at Vadinar. Option D confuses money with people, because the figure of 3,500 refers to the direct and indirect jobs the plant is expected to create. The capital is shared between the two partners in the ratio 76:24.

Q3.EnvironmentMedium

Which organisation has joined the Deendayal Port Authority to build the e-methanol plant at Kandla?

  1. A.Assam Petro-Chemicals Limited
  2. B.Indian Oil Corporation Limited
  3. C.Gujarat State Petroleum Corporation
  4. D.Oil India Limited
Show answer

Correct answer: A. Assam Petro-Chemicals Limited

Explanation

The correct answer is Assam Petro-Chemicals Limited, the Namrup-based company that has tied up with the Deendayal Port Authority for the project. Capital is shared between them in the ratio 76:24, the port authority contributing 567.32 crore rupees of equity along with 75 acres of land, desalinated water and renewable energy in the form of green hydrogen. Options B, C and D name other energy companies that have no role in this particular plant, so they are wrong. The venture was described as an example of Ek Bharat Shreshtha Bharat because it brings Assam and Gujarat together, and the Union Minister noted that the Assam company is based in Namrup in his own Dibrugarh constituency. Aspirants should remember both partners and the state each belongs to.

Frequently Asked Questions

Where is India's first port-based e-methanol plant being built?

At the Deendayal Port Authority in Kandla, Gandhidham, Gujarat. The foundation stone was laid on 26 September 2026 and the plant will make 150 tonnes of e-methanol a day.

How much will the Kandla e-methanol project cost?

2,300 crore rupees in all. Phase I adds 50 tonnes a day for 1,200 crore rupees by January 2027 and Phase II a further 100 tonnes a day for 1,100 crore rupees by March 2027.

Which two organisations are building the plant?

The Deendayal Port Authority and Assam Petro-Chemicals Limited, based at Namrup in Assam. They share the capital in the ratio 76:24, with the port authority putting in 567.32 crore rupees of equity, 75 acres of land, desalinated water and green hydrogen.

Sources

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