L&T-Tata Steel's Dhamra Port Fin closure by July

Larsen & Toubro Ltd (L&T) and Tata Steel Ltd are all set to reach financial closure for their Rs 1,400 crore Dhamra Port project being developed as a 50:50 joint venture in Orissa by July end.

"With Tata Steel as a partner, Dhamra Port project is expected to reach financial closure by July end and this port will have capacity to handle 12.5 million tonne of cargo," L&T Chief Financial Officer Y M Deosthalee told PTI on Sunday.

Deosthalee said the estimated cost of first phase development of this port is at Rs 1,400 crore and cost for second is not yet finalised.

Earlier, Thailand-based Precious Shipping Company and US-based Stevedores Service Associates Inc had walked out from the project due to delay in execution process, he said.

"With Tata Steel, the project execution will be expedited following financial closure. This will be a exclusive bulk port and we are exploring idea of handling clean cargo like steel at Dhamra Port," he said.

L&T Senior Vice President (Operations) K V Rangaswami said the port would be having 18 metres draught after dredging enabling bigger vessel to call at Dhamra.

"Meanwhile, L&T is also expanding facilities at Kakinada port in Andhra Pradesh with an esitmated cost of Rs 70 crore. As the traffic has increased substantially at the port, L&T will enhance infrastructure facilities,"