India Approves $45m Dredging Aid for Kolkata Port
India's Finance Ministry has approved central assistance of INR4.31 billion, about US$45 million, towards maintenance dredging by the Syama Prasad Mookerjee Port Authority (SMPA) in Kolkata. The money covers the 2024-25 and 2025-26 financial years.
The Department of Expenditure issued the approval in an office memorandum dated 22 October 2026. SMPA spent INR7.64 billion (US$80 million) on dredging over the two years, which leaves the port to fund the remaining INR3.34 billion (US$35 million) itself.
Channels and silt
The work covers the Hooghly River and the navigation channels serving the Kolkata Dock System and the Haldia Dock Complex. SMPA maintains roughly 232 kilometres of channel leading to the Kolkata dock system and 125 kilometres leading to Haldia. Both stretches are subject to perennial siltation.
Conditions from 2026-27
From the 2026-27 financial year, assistance will be released only if the port meets annual key performance indicators. They cover the share of cargo handled by operators working through public-private partnerships, berth mechanisation, cargo traffic and pre-tax net surplus. The dredging subsidy itself is left out of the surplus calculation. SMPA said it met the targets set for 2025-26.
"Such financial support is crucial in enabling SMPA to undertake transformative mechanisation projects through PPP mode, attract reputed private operators, and enhance overall competitiveness and efficiency," the port authority said.
Seven-year framework
The approval falls under a seven-year framework cleared by the Public Investment Board on 12 November 2025. It runs from 2024-25 to 2030-31 and puts estimated dredging spending at INR37.65 billion (US$400 million). The central government will contribute INR18.39 billion (US$190 million) and the port authority will fund INR19.26 billion (US$200 million) from its own resources.
The central share falls from 58 per cent in 2024-25 to 40 per cent in 2030-31. After that, SMPA's internal resources will pay for all dredging.
Source: Baird Maritime