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By:

Bhalchandra Chorghade

11 August 2025 at 7:24:18 pm

Panvel: MMR’s next economic hub

Panvel is now emerging as a multi-modal gateway linking Mumbai’s commercial economy with Navi Mumbai’s airport, JNPA’s port ecosystem and Raigad’s industrial belt Mumbai: For centuries, Panvel’s importance came from its location. The town grew around land and sea trade routes and was historically known for its rice market. Today, that same locational advantage is being recast in a dramatically different economic landscape — one shaped by an international airport, a major container port,...

Panvel: MMR’s next economic hub

Panvel is now emerging as a multi-modal gateway linking Mumbai’s commercial economy with Navi Mumbai’s airport, JNPA’s port ecosystem and Raigad’s industrial belt Mumbai: For centuries, Panvel’s importance came from its location. The town grew around land and sea trade routes and was historically known for its rice market. Today, that same locational advantage is being recast in a dramatically different economic landscape — one shaped by an international airport, a major container port, expressways, freight corridors, railways and expanding urban infrastructure. Panvel is consequently moving from being a transit point between Mumbai, Pune and the Konkan to becoming a destination in its own right. “Panvel can no longer be viewed merely as a residential extension of Mumbai and Navi Mumbai. It is fast becoming a commercial and economic destination in its own right,” said Prashant Thakur, MLA, Panvel Assembly Constituency. The transformation is not entirely new. Panvel is around 300 years old and its evolution was closely linked to trade and transportation. Its commercial DNA, therefore, predates the development of Navi Mumbai by several decades. What has changed is the scale and quality of connectivity around it. The development of Navi Mumbai from the 1970s brought planned nodes such as New Panvel, Kharghar, Kamothe, Kalamboli and Taloja into a rapidly urbanising landscape. The creation of the Panvel Municipal Corporation in 2016 further expanded the administrative footprint, bringing the old town and several rapidly developing areas within one municipal framework. That expansion is now meeting an unprecedented infrastructure build-out. Panvel’s Geography Panvel’s strongest advantage is not any single project but the convergence of several major transport systems. The Mumbai–Pune Expressway and Sion–Panvel corridor connect it with Mumbai and Pune, while the Mumbai–Goa highway provides access towards the Konkan. Close by are JNPA, the Navi Mumbai International Airport and the wider Navi Mumbai urban economy. Then came the 21.8-km Atal Bihari Vajpayee Sewri–Nhava Sheva Atal Setu. Opened to traffic in January 2024, the bridge has strengthened the physical and economic connection between Mumbai and the Navi Mumbai–Panvel–Raigad region. For Panvel, its significance extends beyond shorter travel times. It has expanded the geography within which companies can locate offices, warehouses, hotels and support businesses. “The coming decade can establish Panvel and its surrounding region as one of India’s most dynamic economic growth centres,” said Thakur. “An international airport, a world-class port ecosystem, highways, railways, Metro connectivity and Atal Setu are creating an economic ecosystem of enormous potential.” The Navi Mumbai International Airport has added another dimension to this transformation. With commercial operations commencing in December 2025 and international connectivity subsequently being added, the airport corridor has moved from being a long-term infrastructure proposition to an operating economic ecosystem. For Panvel, the airport effect could extend well beyond residential real estate. An international airport generates demand for business hotels, corporate offices, aviation-linked services, logistics, retail, hospitality, healthcare and other ancillary businesses. The emerging airport corridor is already changing the development narrative across Panvel, Ulwe, Kharghar, Taloja, Karanjade, New Panvel and Dronagiri. Perhaps the most distinctive element of Panvel’s economic proposition is its proximity to two major gateways — JNPA and NMIA. JNPA is integrated into the national freight network and is supported by road and rail connectivity, including the Dedicated Freight Corridor. The wider port ecosystem is also being strengthened through improved road links and connectivity towards Panvel and the airport. This gives the region a natural advantage in logistics, warehousing and supply-chain activity. The opportunity extends into the wider Raigad industrial belt, including Taloja, Patalganga, Roha and surrounding manufacturing clusters. For chemical and manufacturing companies, Panvel can potentially serve as a commercial and logistics gateway. Proximity to JNPA can facilitate the movement of imported raw materials, equipment and chemical feedstock, while road and freight connectivity can support distribution to domestic markets. The future opportunity could also extend beyond bulk chemicals to specialty chemicals, pharmaceuticals, advanced materials, chemical equipment and downstream manufacturing. NMIA adds another layer by improving access for high-value and time-sensitive products, corporate executives, technical specialists and international business. However, such growth would require planned industrial infrastructure — including common utilities, effluent treatment, hazardous-material handling, waste management, water recycling and emergency-response systems. Commercial Model Mumbai’s traditional commercial districts face constraints of land availability, high real-estate costs and congestion. Panvel, by contrast, can offer larger land parcels and the possibility of integrated development around multiple transport modes. This opens the door to a different commercial model — large office campuses, mixed-use developments, business parks, hotels, logistics facilities, institutional campuses and specialised industrial offices. Healthcare and education could become equally important components of this ecosystem. Thakur said the development of Medicity and Educity, along with emerging concepts such as Innovation City and Third Mumbai, could further alter the economic geography of the Panvel–Pen region. “Kharghar is also emerging as an important commercial destination, with plans for a new business centre. All these developments point towards one clear conclusion: Panvel is not merely a residential growth corridor; it is becoming a commercial and economic destination,” he said. Jobs Drive Inclusion The real test of Panvel’s transformation, however, will be the employment ecosystem it creates. The airport, logistics sector, IT and digital services, healthcare, hospitality, construction, engineering, financial services and emerging industries can generate opportunities across a broad range of skill levels. “Our youth must be the biggest beneficiaries of this transformation,” said Thakur. “I want the young people of Panvel not merely to witness this transformation, but to participate in it, benefit from it and eventually lead it.” That would require greater emphasis on technical education, industry-oriented training, skill development and employability programmes. An emerging education ecosystem could also create opportunities for specialised disciplines such as chemical engineering, biotechnology, materials science, aviation services and industrial research. The challenge is to build infrastructure ahead of demand. The scale of the opportunity also brings a significant planning challenge. As commercial activity and population increase, Panvel will need adequate water supply, electricity, roads, public transport, sewage systems, waste management, healthcare, education and other civic infrastructure. Rapid urbanisation without corresponding infrastructure capacity could undermine some of the advantages that are currently attracting investment. “Growth must be supported by quality infrastructure,” Thakur said. “Infrastructure capacity must grow ahead of demand rather than struggle to catch up with it.” The proposed Panvel Development Plan for 2024–2044 assumes a much larger urban footprint and seeks to provide a longer-term framework for managing growth. The challenge will be to ensure that infrastructure planning keeps pace with the speed at which private and public investment is reshaping the region. Panvel’s transformation is therefore not simply another real-estate story. Its significance lies in the convergence of its past and future: a centuries-old trading town is now located at the intersection of an international airport, one of India’s major container ports, national highways, the Mumbai–Pune economic corridor, freight infrastructure, suburban rail and metropolitan expansion. Economic Centre Mumbai has traditionally been the economic centre, while Navi Mumbai was developed as its planned counterpoint. Panvel is now emerging as the bridge between that established metropolitan economy and the next growth geography stretching towards Raigad. “Panvel is changing. Panvel is connecting. Panvel is creating opportunities. And Panvel is now emerging as a new commercial address on the global map,” said Thakur. The real shift is from transit to destination. If infrastructure investment is matched by integrated planning, employment generation, social amenities and sustainable industrial development, Panvel could evolve into something more significant than a residential extension of Mumbai or Navi Mumbai: a multi-modal commercial and socio-economic hub serving the entire MMR–Raigad corridor.

Indian Shipbuilding A Must Win Marathon

Writer: Capt. Naveen S Singhal
Capt. Naveen S Singhal
Dec 5, 2024
4 min read
Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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