India's First Port-Based e-Methanol Plant Announced at Kandla Port
Deendayal Port Authority and Assam Petro-Chemicals Ltd have partnered to establish India's first port-based e-methanol plant at Kandla, Gujarat. The ₹2,300-crore project features a 76:24 equity structure and will produce 150 tonnes of green marine fuel daily across two phases.
What happened
The foundation stone for India's first port-based e-methanol production facility was laid on 26 September 2026 at Kandla (Gandhidham) in the Kutch district of Gujarat. Developed within the logistics zone of the Deendayal Port Authority (DPA) across 75 acres, the project is a collaborative venture between DPA and Assam Petro-Chemicals Ltd (APCL). The foundation-laying ceremony was attended by Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Dr. Himanta Biswa Sarma, along with DPA Chairman Sushil Kumar Singh and APCL Chairman Bikul Deka.
The venture has an estimated capital investment of ₹2,300 crore and is structured with a 76:24 equity split between DPA and APCL. As part of its contribution, DPA will provide ₹567.32 crore in equity, alongside 75 acres of land, desalinated water, and renewable electricity for producing green hydrogen. The plant will have a combined capacity of 150 metric tonnes per day (TPD) executed in two phases: Phase I will deliver 50 TPD with an investment of ₹1,200 crore by January 2027, while Phase II will add 100 TPD with ₹1,100 crore by March 2027.
The production process will synthesize green hydrogen, extracted from desalinated water using renewable power, with captured biogenic carbon dioxide to yield carbon-neutral e-methanol. Operating at an estimated cost of US$750 per tonne—compared to the prevailing global price of US$1,300 per tonne—the plant aims to supply cleaner bunker fuel for merchant vessels along the Singapore–Rotterdam shipping corridor, while generating more than 3,500 direct and indirect jobs.
Important dates
| Foundation Stone Laid | 26 September 2026 |
|---|---|
| Phase I Completion Target (50 TPD) | January 2027 |
| Phase II Completion Target (100 TPD) | March 2027 |
📌 Static GK links
- Deendayal Port Authority is a Major Port located on the Gulf of Kutch at Kandla, Gujarat, governed by the Ministry of Ports, Shipping and Waterways.
- Kandla Port was established in the 1950s after the partition of India led to the loss of Karachi Port to Pakistan.
- Assam Petro-Chemicals Ltd (APCL) is a state public sector undertaking headquartered in Namrup, Assam.
- APCL operates a 500 TPD methanol manufacturing facility dedicated by the Prime Minister in April 2023.
What candidates should do
- Record the project capacity, equity ratio, and participating entities for upcoming Banking Awareness and SSC General Awareness sections.
- Review national initiatives on green shipping, port modernization, and the National Green Hydrogen Mission for UPSC and State PSC mains preparation.
PrepZen analysis
This project is a prime candidate for objective questions in Banking (IBPS, SBI, RBI) and SSC exams under the 'First in India' and 'Infrastructure' categories. Questions typically target the plant location (Kandla), the partner organisations (DPA and APCL), the investment figure (₹2,300 crore), or the equity share (76:24). For UPSC and State PSC exams, this development serves as an operational example of green port transition and inter-state public sector synergy, aligning directly with India's Net Zero 2070 commitment and maritime goals to expand the merchant shipping fleet.
Practice questions
Q1. Where is India's first port-based e-methanol plant being established?
Q2. What is the equity ratio between Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL) for the Kandla e-methanol project?
Q3. What is the total planned production capacity of the e-methanol facility at Deendayal Port?
Kandla in Gandhidham, Gujarat serves as the location for this breakthrough project.
The planned facility possesses a total output capacity of 150 tonnes daily.
Estimated capital investment is ₹2,300 crore with a 76:24 DPA-APCL equity structure.
🎯 Key Point: India's first port-based e-methanol plant is coming up at Kandla, Gujarat.
FAQs
Where is India's first port-based e-methanol plant being constructed?
The plant is being constructed on 75 acres of port land at Kandla (Gandhidham) in the Kutch district of Gujarat, under the Deendayal Port Authority.
Which public entities are developing the Kandla e-methanol project?
The project is a joint development between the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL).
What is the total estimated investment and capacity of the plant?
The estimated project cost is ₹2,300 crore, with a total production capacity of 150 metric tonnes per day rolled out in two phases.
Where is the headquarters of Assam Petro-Chemicals Ltd located?
Assam Petro-Chemicals Ltd is headquartered in Namrup, Assam.
Sources
- theweek.in (www.theweek.in)
- chemicalweekly.com (www.chemicalweekly.com)
- insightsonindia.com (www.insightsonindia.com)
- drishtiias.com (www.drishtiias.com)
Prepared by the PrepZen Editorial Team from official releases and verified reports, for exam preparation. Spotted an error? Write to prepzen.app@gmail.com.
Practice Quiz — 29 September 2026
Q1. What is the primary duration and focus of the Vision Document on Narcotics Control unveiled at the 3rd National ANTF Conference?
Q2. What is the joint venture equity contribution ratio between Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL) for the e-methanol facility at Kandla?
Q3. At which major port did the Cabinet Committee on Economic Affairs (CCEA) approve the ₹17,167-crore Outer Harbour Project?
Q4. Consider the following statements regarding the newly launched Advantage SBI Card on YONO: 1. It is a secured credit card issued against a customer's fixed deposit. 2. The entire application and issuance process is executed digitally on the YONO platform. 3. It is available in four variants including ELITE and SimplySAVE. Which of the statements given above are correct?
Q5. Which regulatory authority granted approval for rebranding ICICI Prudential Life Insurance Company Limited to ICICI Life Insurance Limited?
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