The port is located 170 km (110 mi)[10] from India's third-most populous Megacity, Kolkata.

The port area falls under class III seismic zone, which indicating a moderate risk of earthquakes.

Its main objective was to overcome the navigability problem of the Haldia Dock Complex and Kolkata Dock System belonging to the Port of Kolkata in West Bengal, which created a problem of excess cost in importing and exporting goods.

However, the Government of West Bengal was willing to give 26 percent stake in the proposed port project.

Later, the Government of West Bengal informed that if the Government of India provided financial assistance for the construction of a bridge over the Muri Ganga River to connect Sagar Dwip in South 24 Parganas with the mainland, then 76 percent stake of the Port project would be given to the Port of Kolkata.

Even after accepting the state's proposal, the Government of West Bengal took up the plan to build the port by the private sector due to taking no initiative on the bridge construction project.

[12] The West Bengal government called for expressions of interest (EoI) from global agencies to set up a deep-sea port in Public-Private Partnership in East Midnapore at Tajpur on 28th December, 2020.

Mamata Banerjee had announced that around ₹4,200 crore will be the investments by the State government, West Bengal Chief Minister.The project is expected to draw investments to the tune of ₹15,000 crore; There will not be any land acquisition involved as there is adequate land available for the project, she had said.

The land required for the construction of infrastructure for cargo handling will be reclaimed from the sea by filling with sediment.

An 18.8 km (11.7 mi) long approach channel at open sea will be used for the movement of ships to the port's harbour.