The government plans to utilize the substantial cash reserves of state-run ports to finance the construction of new port facilities, including major projects like Vadhavan in Maharashtra and Galathea Bay in the Andaman and Nicobar Islands. This approach is being taken in response to reduced budget allocations for port development. The Union Budget for 2024-25 has set aside Rs700 Crore for Sagarmala schemes—Rs660 Crore for revenue and Rs40 Crore for capital expenditures but has not allocated funds for the Sagarmala Development Company Ltd. The 12 major ports, managed by the Union government, collectively hold cash reserves of around Rs18000 Crore, a figure expected to grow with annual savings. The government argues that these ports should use part of their surplus to fund new infrastructure projects, especially since they do not pay dividends to the exchequer because they operate as authorities rather than profit-driven entities. For instance, ports like Deendayal, Paradip, Visakhapatnam, and V.O. Chidambaranar have been asked to contribute towards developing an international container transhipment port at Galathea Bay, which will require an investment of approximately Rs42,000 Crore. These ports will form a special purpose vehicle (SPV) to develop the port infrastructure, with private firms handling the cargo operations afterward. A similar model is being used for the Vadhavan Port project, where the Jawaharlal Nehru Port Authority is the main equity partner in the SPV. The major ports are also being considered for partial funding of a Maritime Development Fund (MDF), aimed at providing low-cost, long-term capital to the maritime sector. However, some of the financially stable ports are reluctant to dip into their reserves for these new projects or the MDF, as they need funds for their own infrastructure development and to cover employee benefits and other statutory obligations.