IDFC to invest Rs 100 crore in Gujarat Pipavav

Infrastructure Development Finance Company's (IDFC) private equity arm plans to invest around Rs 100 crore in Gujarat Pipavav Port Ltd (GPPL).

The investment is part of its partnership with Danish shipping major AP Moller-Maersk group for acquiring a controlling interest in the private sector port.

The investment will be made by India Development Fund (IDF), a Rs 843.75 crore private equity fund managed by IDFC Asset Management Company, sources said.

Discussions between AP Moller-Maersk and Sea King Infrastructure Ltd (SKIL), the founders of GPPL, are in advanced stages for passing control of the port to the Danish company. AP Moller-Maersk is one of the largest container shipping lines and port terminal operator.

IDF and AP Moller are in final stages of discussions with Sea King Infrastructure for buying a controlling interest in GPPL.

AP Moller already has about 26 per cent stake in GPPL. GPPL, India's first private sector port, is a deepwater, all weather, direct berthing port in Saurashtra region of Gujarat.

The management change at GPPL will follow implementation of the proposed Rs 1,000 crore container terminal at the port with a capacity to handle over 1.3 million TEUs annually.

The Pipavav port currently has three dry cargo berths and one LPG/liquid cargo berth where ships of 3000 DWT to 45,000 DWT can berth directly. The three dry cargo berths have been constructed as a single length jetty of 725 meters, employing equipment capable of handling multipurpose cargo.

IDF has already invested Rs 330 crore in four companies "" power generation company GMR Energy, Gujarat State Petronet and two hotel properties, Hotel Leelaventure and Chalet Hotels.

IDFC is the sponsor of IDF and the other lead investors include State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Union Bank of India.