The Indian maritime sector has seen a notable expansion, backed by a sizeable increase in port cargo handling capacities, over the years. This has been facilitated the both by capacity expansions of existing port infrastructure and through greenfield projects. In line with this, the total cargo handled at ports has witnessed a notable rise in recent times. It has also facilitated the handling of a larger number of vessels, of bigger sizes. These developments have, in turn, led to an increase in demand for greater dredging activity.
Market size and drivers
According to industry reports, India’s dredging market stands at 157 million cubic metres (mcum), comprising 110 mcum of maintenance dredging and 47 mcum of capital dredging. India’s vast footprint of port infrastructure, facilitated by a coastline spanning over 11,000 km, is seen to be the key driver for the dredging industry, both in terms of capital and maintenance dredging. The coming up of new greenfield ports and brownfield expansion projects has driven capital dredging requirements over the years, to ensure availability of the necessary depth and width for vessel movement. Further, existing ports are seen to pose significant demands for maintenance dredging in terms of maintaining depths and removing accumulation of silt, to ensure the seamless handling of vessels. Moreover, government programmes such as Sagarmala and the push for the development of inland waterways are also driving dredging activity. The segment has also been characterised by a focus on the adoption of new technologies, implementation of sustainable measures to reduce emissions from operations and a rise in demand for indigenous dredgers.
Recent developments
The dredging segment has witnessed a notable development in the recent past, with respect to implementation and payment. For the first time in India, the Public-Private Partnership (PPP) Appraisal Committee has cleared the development and maintenance of dredging, offshore reclamation and shore protection for Vadhvan Port on a PPP hybrid annuity model (HAM) in June 2025. Under this, the payment structure has been set at a 45:55 ratio, where 45 per cent of the upfront payment would be made by the authority and 55 per cent by the concessionaire. The integration of HAM is expected to enhance the playing field through competitive bidding, offer better risk sharing among private players and reduce the long-term maintenance cost.
Apart from this, notable dredging operations are under way at various ports in the country. The major dredging work in front of North Cargo Berth III at V.O. Chidambaranar Port was completed in May 2025. The draft has been increased to 14.2 metres and the diameter of the turning circle has been increased to 550 metres. The coming in of larger vessels into Indian waters has also been a driver for dredging in the sector. For example, dredging works are also planned to be carried out at the channel of Mormugao Port to accommodate capsize vessels. Moreover, the Dredging Corporation of India (DCI), in its aim to expand the domestic footprint, also has plans to expand globally and tap emerging opportunities in regions including the Middle East, Southeast Asia and South Asia.
Waterways
The government has been showing an increased focus on enhancing existing national waterways (NWs) and promoting cargo movement via these channels. As a result, these waterways are seeing increasing requirements for dredging. As of March 2025, some of the ongoing dredging works on NW-1 include the Tribeni-Katwa stretch, the Katwa–Farakka stretch, the Farakka-Kahalgaon stretch and the Sultanganj-Barh stretch, among other works. Apart from this, DCI has been appointed for maintaining a 2.5 metres draft on NW-2 from the Bangladesh border to Pandu until 2026-27, with an estimated investment of Rs 1.91 billion.
Moreover, efforts have been made for increasing the efficiency of dredging activities. From the equipment front, efforts are being undertaken to ensure the selection of the dredger and the method in line with the river conditions, carrying out regular inspections of equipment and the use of equipment that provides better efficiency.
Diversified dredging applications
Apart from ports and waterways, dredging is also carried out in canals, dams and other waterbodies. These aid in widening reservoirs and preventing flooding through the removal of sediments and obstructions. The regular and effective dredging of dams would aid in maintaining capacity. Dredging work was recently carried out at the canal located in the Virajpet municipality. Desilting was carried out on the canal stretch of approximately 15 km to prevent flooding during the monsoon season and ensure smooth water flow. Dredging works also commenced on the Chilavannoor Canal at Kochi in Kerala in August 2025, targeting the removal of soil measuring around 65,000 cubic metres. In addition to mitigating flood risk and facilitating the natural water flow, water stagnation would be prevented.
Apart from this, plans also exist for the desilting and dredging of rivers. The Delhi government has plans to approach the National Green Tribunal for permission to carry out dredging for the Yamuna riverbed, in a move to mitigate urban flooding, increase the river’s capacity and revive the natural flow. Meanwhile, the Teesta river is also expected to be desilted. Silt deposit on the riverbed had increased following the glacier lake outburst flood in Sikkim in 2023. The decision was taken as a preventive measure. The dredged materials from the project are targeted to be sold, resulting in a no-cost-effect dredging.
Integrating technology and sustainability
As the demand for dredging increases, efficient and seamless management of operations becomes vital. In this regard, the digitalisation and deployment of advanced technologies are aiding in streamlining operations and enhancing efficiency. A key initiative is the launch of the Sagar Samriddhi online dredging monitoring system by the Ministry of Ports, Shipping and Waterways. The system facilitates tracking and visualising dredgers and dredging activity. Further, dredging projects digitally monitor real-time data to track operations, including sediment removal, depth and the performance of dredgers. In a recent development, DCI appointed the RailTel Corporation of India for leveraging offshore internet connectivity for DCI vessels and an integrated command and control centre.
With the rise in dredging activity, the subsequent environmental concerns that arise are seen as a a notable concern for the sector. Efforts have been made both by the government and private players to mitigate these effects. An addendum was issued to the Dredging Guidelines for Major Ports, 2021, bringing into the picture the “Waste to Wealth” idea, for the reuse of dredged materials. Dredged material can be recycled for various purposes ranging from construction to restoration projects to erosion control. In addition to reducing the impact on the environment, these activities also reduce conventional material requirements. Apart from this, the segment is also working towards adopting alternative fuels and electricity for powering dredgers.
In a recent development, approximately 800,000 cubic metres of dredged material were obtained from works at V.O. Chidambaranar Port, comprising calcareous sandstone and calcarenite. This was repurposed to create land for cargo storage, spanning 11.5 hectares. Moreover, capital dredging works undertaken over the years at the port have facilitated around 146 hectares of reclaimed land.
Challenges
The sector, while witnessing notable growth, is hindered by challenges. On the operational front, limited availability of indigenous dredgers increases external reliance. Moreover, shortages of dredgers and related equipment pose a challenge. Challenges are also seen with regard to insufficient investigations prior to construction. This could lead to the use of dredgers that do not suit conditions, leading to unnecessary delays. National waterways, in particular, faced heavy siltation and limited availability of dredgers with a low draft for deployment in rivers. Moreover, dredging is characterised by high capital requirements, posing hindrances on the financial side. Other challenges include the limited availability of skilled labour, effect of monsoons, ageing equipment and environmental concerns.
Sector outlook
As per industry reports, the dredging segment has a market potential of Rs 25 billion-Rs 28 billion. Moreover, the market is estimated to reach approximately 200-250 mcm by 2030. Existing drivers, including port expansion and maintenance, are expected to continue to push for increasing dredging activities in the years to come, especially given the government’s targets for port capacity expansions. As per the Maritime India Vision 2030, India targets to have a port handling capacity of 3,500 mmtpa by 2030 and further aims to reach 10,000 mmtpa by 2047 under the Amrit Kaal Vision 2047. Apart from this, rising instances of urban flooding are expected to see desilting of canals and dams to maintain capacities.
While challenges for smooth and seamless dredging operations exist, the segment is expected to witness further initiatives to mitigate these hurdles. While the manufacture of indigenous dredgers would provide a boost to both the local economy and reduce external dependence, continuous monitoring of existing equipment is imperative. Further, the integration of new technologies for operations and pre-surveys is expected to enhance processes and drive future trends.
