Based on the purpose for which it is undertaken, dredging processes mainly include maintenance dredging and capital dredging. Maintenance dredging is carried out to tackle the accumulation of debris in waterbodies over time. This is essential to maintain the depth of the channel and ensure the safe and efficient movement of vessels at ports and along waterbodies. Apart from this, with ship sizes increasing over time, naturally occurring harbours sometimes fail to meet the depth criteria for handling these vessels. In this regard, capital dredging works are carried out for the provision of deeper and wider channels to accommodate these ships.
Recent developments
Dredging works have been undertaken at existing and upcoming ports in the country and on national waterways, in order to enhance operations and vessel-handling capabilities
Recently, the Jawaharlal Nehru Port Authority (JNPA) signed an MoU with the NMDC Group PJSC (formerly known as the National Marine Dredging Company PJSC) in February 2025, according to which the latter would would undertake a proposed investment of Rs 210 billion for dredging, reclamation and shore protection of the Vadhvan coast for the Vadhvan port project. The move is a notable step for the project, which aims to develop the port as a world-class maritime hub. The all-weather deep-draught port is expected to stand among the top 10 ports globally.
Further, dredging works are under way at North cargo Berth-3 at V.O. Chidambaranar Port, which would facilitate the handling of vessels up to a draft of 14.2 metres. Dredging works are also expected to be carried out to expand the diameter of the turn circle from 488 metres to 550 metres. Apart from this, the foundation stone for capital dredging works at Kamarajar Port was laid in December 2024, and the contract for the work was later awarded to Van Oord India Private Limited. Under the project (Phase VI), the draught is aimed to be increased from 16 metres to 18 metres, targeting to accommodate
Capesize vessels.
Moreover, with the movement of cargo through waterways gaining increasing focus, notable dredging works have been undertaken in this segment. For instance, dredging works for the waterway connecting the Gomati (Tripura) and Meghna rivers (Bangladesh) commenced in December 2024, and works on the Tripura section of the project are targeted to be completed before the June 2025 monsoons. As part of the project, dredging on the Maharani area in Gomati has begun during February 2025, with works to gradually progress towards Sonamura in Sepahijala district, where the water body enters Bangladesh at Daudkandi. The project aims to connect Tripura with Bangladesh and later Kolkata via inland waterways, enhancing the waterway connectivity to Tripura and facilitating the transportation of goods between Kolkata and Tripura more economically. Further, the Dredging Corporation of India (DCI) has been appointed to ensure that the stretch from the Bangladesh border to Pandu in NW-2 has an assured draught of 2.5 metres. Two cutter suction dredgers will be purchased for the same. Further, three amphibious dredgers will be procured for the Barak river.
Apart from this, the segment recently witnessed a notable development on the funding and payment front. In November 2024, JNPA cleared a proposal for the implementation of the hybrid annuity model for dredging, offshore reclamation and shore protection work at Vadhvan port in two phases. A 60:40 payment structure would be adopted, unlike the 40:60 model used by the National Highways Authority of India.
Focusing on manufacturing of dredgers
The rising dredging activity will also lead to a subsequent rise in the demand for dredgers. While notable opportunities exist for investment in this segment, various players have initiated efforts and undertaken collaborations for the manufacturing of dredgers in India.
Recently, BEML Limited signed an MoU with Dragflow S.R.L. Italy in March 2025, in a move to address the needs for advanced dredging solutions in India. As part of the MoU, both entities will collaborate for the design, development, testing, commissioning, supply and after-sales services of the amphibious cutter suction dredgers, and offer locally manufactured desilting solutions that are cost-effective and reliable for applications in riverine, inland waterways and other marine dredging requirements. The move will strengthen local manufacturing capabilities, aligning with the Make in India and Aatmanirbhar Bharat targets. Further, it aims to address challenges faced in waterway management, reservoir sustainability and urban flood resilience. Also, Cochin Shipyard Limited laid the keel for the Trailing suction hopper dredger “DCI Dredge Godavari” for the DCI in September 2024. The dredger is being built in collaboration with Royal IHC Netherlands and is expected to be one of the most technologically advanced and sophisticated dredgers to be built in the country. It spans a length of 127 metres and a width of 28 metres, and has a hopper capacity of 12,000 cubic metres.
Moving towards digital and sustainable operations
While the demand for dredging requirements rises, looming environmental concerns pose challenges. Dredging activities impact the marine ecosystem and habitat, and inefficient handling of dredging sediments could have adverse effects.
In this regard, the government has undertaken initiatives to ensure sustainable and digital operations in the dredging segment in India. The Ministry of Ports, Shipping and Waterways (MoPSW) put forth the Dredging Guidelines for Major Ports, 2021, superseding the Dredging Guidelines of 2016, for carrying out project cost estimation in line with international standards by major ports or schedule of rates by the state maritime administration, among other objectives. Further, an addendum was issued to the Dredging Guidelines for Major Ports, 2021, to introduce the “Waste to Wealth” idea, for channelling dredging material to be utilised for alternative beneficial purposes in a bidding process. The use of dredged materials for alternative purposes leads to resource savings, positively impacting the environment. It would also lead to notable cost savings with the monetisation of the dredged material. Alternative uses of dredged material include civil construction works, beach nourishment, restoration of wetlands, erosion control, use for agricultural purposes and landscaping, among others. In terms of the reuse of dredged segments, a research proposal on the “Valorisation of Dredged Sediments” has been approved recently, with an estimated cost of over Rs 4.6 million. The project aims for value addition to dredging sediments by converting them into aggregates for widespread use in construction applications.
Apart from this, dredgers and dredging equipment also lead to a substantial amount of carbon emissions during operations. In line with this, the adoption of dredgers that run on alternative fuels, such as liquefied natural gas and those that are powered by electricity, would aid in cutting down emissions, paving the way for cleaner operations.
On the digital front, the MoPSW also launched Sagar Samriddhi, an online dredging monitoring system to boost the “Waste to Wealth” initiative. Among others, the system will provide progress reports on real-time dredging, visualisation on a daily and monthly basis, an option for monitoring the performance and downtime of dredgers and location tracking data, along with loading, unloading and idle time snapshots.
Moreover, the dredging segment poses notable opportunities for further integration of digital and technological initiatives. The adoption of real-time monitoring and tracking systems will ensure efficient monitoring of operations, reducing delays for decision-making.
Challenges and future outlook
While the dredging segment has witnessed significant developments, challenges still pose a hindrance to effective operations. Inefficient and inadequate geotechnical investigation during the initial stages leads to challenges and delays and reduces the efficiency of works carried out. Financial hurdles are also faced due to the capital-intensive nature of dredging activities and other costs. Further, outdated equipment, non-availability of skilled labour and other environmental concerns also lead to setbacks in carrying out dredging activities.
Although challenges are seen to exist, dredging activity in the ports sector is expected to witness a continued upward trend backed by demand. The cargo handling capacity at Indian ports is targeted to be increased to over 3,500 mmtpa by 2030 under the Maritime India Vision 2030 and to 10,000 mtpa by 2047 under the Amrit Kaal Vision 2047. In line with this, the sector is poised to see the coming up of new greenfield ports and notable expansion at existing ones, which is further expected to drive the demand for dredging in the future. Moreover, increased focus on the development of waterways for cargo and passenger transportation is also expected to drive the demand for dredging activities. Looking ahead, promoting the manufacturing of indigenous dredgers, the integration of technology and efforts to minimise the impact on the environment are expected to shape the segment.
