JNPT to raise Rs 600 cr to clear WB dues

Jawaharlal Nehru Port Trust (JNPT), which handles over 56 per cent of the country's container traffic, will raise Rs 600 crore from market as the government has asked the port to repay Rs 727 crore interest on a World Bank loan.

Earlier, the port trust had requested the government to defer the interest payment or to treat this amount as a contribution to the port's Rs 800 crore channel dredging project.

"The government had rejected the plea and has now asked to repay the outstanding interest of Rs 727 crore. It had also asked JNPT to go alone in channel dredging project," said top shipping ministry sources.

Confirming the development, JNPT Chairman Ravibushan Budhiraja said, "We will tap the debt market to raise Rs 600 crore. We will also arrange another Rs 100 crore from our internal accruals.

At present, the port is paying interest rate of 10 to 11 per cent. "The port will be looking at raising the fund at 7 per cent," said sources.

Meanwhile, JNPT would start Rs 800 crore channel dredging project from September and is expected complete the work in 27 months from the date of execution.

Budhiraja said the cost of the project would be met by raising funds from the market in due course. Mumbai Port would also contribute Rs 100 crore to the project, he said.

"With the widening of shipping channel, the port can accommodate larger parcel vessels," he said.

The vessels calling at Mumbai Port and JNPT use Mumbai Harbour channel for their access to the berths. At present, large vessels of 12.5 metre navigate through Mumbai Harbour channel, making use of tidal window.

According to industry analysts, availability of sufficient draught in the port is very necessary for optimum utilisation of capacity and faster turnaround of larger vessels.

"With increasing trend towards larger size container vessels, draught will become an important factor in the choice of port by the shipping lines which are thinking of deploying larger size vessels to achieve economies of scale," they pointed out.