The Karnataka Cabinet approved two major port and shipbuilding projects worth ₹7,247 crore (₹72.47 billion) under the public-private partnership model on September 22, 2026, marking one of the state’s largest coastal infrastructure pushes in recent years. The approvals cover a new deep-water port at Manki and a greenfield shipyard at Gangolli Beach, both in the coastal Uttara Kannada and Udupi belt.
The larger of the two, the ₹6,925-crore Manki Port project in Uttara Kannada district, will be developed on a design-build-finance-operate-transfer basis under a 45-year concession. Its first phase includes a 15-million-tonnes-per-annum all-weather, deep-water multipurpose port capable of handling coal, iron ore, limestone, fertilisers, petroleum products, containers and steel, with berths for vessels up to 180,000 deadweight tonnage.
What Do the Manki Port and Gangolli Shipyard Projects Involve?
The second phase of the Manki project may add further port capacity or a shipyard capable of producing 0.3-0.5 million gross tonnes annually. Separately, the ₹322-crore Gangolli Beach shipyard in Kundapura will be a greenfield facility designed to build three handysize vessels a year, adding domestic shipbuilding capacity at a time when India is pushing to reduce reliance on foreign yards for commercial vessel construction.
What Do State Officials Say?
Karnataka officials have positioned the twin approvals as central to the state’s blue economy strategy, aiming to convert its coastline into a bigger contributor to cargo throughput and shipbuilding capacity. The projects follow a broader pattern of coastal infrastructure clearances in Karnataka this month, including a proposed Mangaluru water metro and other port-linked works, signalling a sustained push to develop the Uttara Kannada-Udupi coastline as a logistics and manufacturing corridor.
Market and Trade Reaction
Port developers, dredging contractors and steel and bulk cargo shippers are likely to be the first movers once bidding opens for the Manki concession, given its scale and 45-year tenure. Domestic shipbuilders and ancillary component makers stand to benefit from the Gangolli yard’s handysize vessel programme, which adds to India’s small but growing base of commercial shipbuilding capacity outside the major public-sector yards.
What Happens Next?
Karnataka’s ports and inland water transport department will now move to structure the concession agreements and invite private bidders for the Manki Port project, while the Gangolli shipyard proceeds toward detailed design and environmental clearances. Officials have not yet announced a firm construction start date for either project.
Frequently Asked Questions
What did the Karnataka Cabinet approve on September 22, 2026?
The Cabinet approved ₹7,247 crore in port and shipbuilding projects: a ₹6,925-crore deep-water port at Manki in Uttara Kannada and a ₹322-crore shipyard at Gangolli Beach in Kundapura, both under the public-private partnership model.
What is the capacity of the Manki Port’s first phase?
The first phase is designed to handle 15 million tonnes per annum of cargo including coal, iron ore, limestone, fertilisers, petroleum products, containers and steel, with berths for vessels up to 180,000 deadweight tonnage.
How long is the Manki Port concession?
The project will run under a 45-year concession on a design-build-finance-operate-transfer basis.
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