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JNPT to raise Rs 3,000 crore foreign loan for expansion |
Jawaharlal Nehru Port Trust, India’s largest container port terminal, is planning to raise foreign currency dollar denominated loan of Rs 3,000 crore to meet its road expansion plan where the port in consortium with NHAI and CIDCO is converting the six-lane evacuation corridor into 12 lanes over the next two years.
The port is expanding the road to make the port more efficient in terms of loading and unloading the cargo that remain stuck for long durations due to congested roads.
The widening of the evacuation corridor is one of the three major bottlenecks that JNPT faces along with dredging of the channel to 15 metres from the existing 14 metres and expansion of the port capacity.
Neeraj Bansal, deputy chairman of JNPT told Financial Chronicle,“We are looking at foreign loans since we have a natural hedge in terms of dollar income and the rates are almost seven per cent lower than the domestic rate. This would be a huge saving on our investments. Few banks have made presentations to us and we are in process of firming up the proposal. The amount of Rs 3,000 crore would be raised in two phases as the project progresses.”
“The interest obligation of Rs 120 crore per annum could be easily met through tolling rights that JNPT would have over the road till the time we recover the investments. After that it would be taken over by NHAI,” said Bansal.
The company is also waiting for the final report on feasibility of capital dredging of the JNPT channel from 14 metres to 15 metres, which is expected by August after which JNPT will invite tenders for the dredging work.
“The dredging work may also need another Rs 2,000 crore to Rs 3,000 crore, where again we will look at foreign loans facility,’’ Bansal said, adding it would depend on the going rates.”
The company is also simultaneously expanding the capacity of the port where work on two additional terminals is going on. PSA, the Singapore-based company is setting up the fourth terminal where construction work is progressing on schedule and is expected to be commissioned in 2018, which would add 5.8 million twenty feet equivalent (TEU) to the existing capacity, while DP World is expanding its terminal capacity by 0.8 million TEU by end 2016.
“We expect DP World to start partial commissioning by May 15, 2015 which would add around 0.3-0.4 million TEU to our total capacity of 4.5 million TEU,” Bansal explained.
The company is also in final stages of appointing a contractor for the SEZ for which the master plan is ready. JNPT would need to invest around Rs 500 crore for setting up the facility while the companies setting up shop would bring in another Rs 3,000 crore as investment to the project.
Source : mydigitalfc.com
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