Vizag port to borrow Rs 197cr from Japan bank

The Visakhapatnam Port has decided to take a Rs 197-crore soft loan from the Japan Bank for International Cooperation (JBIC) to modernise its iron ore export facility "� Ore Handling Complex (OHC).

The move is aimed at enhancing the iron ore exporting capacity of OHC from the existing 100-120 lakh tonnes to 190-200 lakh tonnes, according to K Ratna Kishore, chairman, Vizag port.

"JBIC had in-principle agreed to give a Rs 197-crore loan. The bank's teams have visited the Vizag port twice, and we will be finalising the loan terms soon," Kishore said, adding, "Interest on this loan will be below 2 per cent." The amount will be invested over the next one-and-a-half years.

As per the modernisation plan, the port will add new and higher capacity equipment like wagon tipplers, bucket wheel reclaimers and other related equipment to its OHC.

Apart from this, it will increase the outer harbour depth from the existing 16.5 metres to 18.1 metres to accommodate 2,00,000 DWT vessels at the outer harbour. It will also strengthen its existing two ore berths. Howe India Private Limited, which was appointed as a consultant, submitted its report on OHC expansion recently.

The port is expecting the iron ore exports to touch 230-lakh tonnes by 2010. Keeping this in mind, the management has decided to modernise the existing facility, Kishore said.

At present, state-owned MMTC Limited, National Mineral Development Corporation (NMDC) and private steel companies like Hy-grade Pellets, Vikram Ispat, Ispat Industries Limited and more than 20 iron ore exporting companies use Vizag port for exporting iron ore.

During last fiscal, the port handled about 140 lakh tonnes of iron ore through its mechanical handling facility.