Dighi Port in Rs 1200 cr expansion

Maharashtra's private Dighi Port has lined up a Rs 1,200 crore expansion programme, including construction of five multi-purpose berths and free trade warehousing zones. This comes on the back of receipt of environmental clearance from the ministry of environment and forest.

"Dighi Port is the first private sector minor port in Maharashtra to secure environmental clearance from the environment ministry. Now we have chalked out a Rs 1,200 crore expansion plans in which IL&FS will be the core developer with 15 per cent equity participation," said Vishal Kalantri, Dighi Port director.

Dighi Port, a joint sector initiative with the Maharashtra Maritime Board (MMB), is expected to handle 15 million tonne of traffic. The port would primarily handle minerals, coal, break bulk, liquid cargo among others and would cover hinterland industrial areas such as Khopoli, Mahad, Roha, Patalganga, Nagothane and Pune.

"In Phase I of the expansion plan, expected to be completed by 2008, Dighi Port will hold 51 per cent equity while 11 per cent will be with MMB. IL&FS will hold 15 per cent stake and will syndicate necessary debts from financial institutions and bankers," Kalantri said.

Dighi is in talks with several port users for strategic partnership for the remaining stake in the proposed expansion programme which would develop liquid berth, coal berth, break bulk berth and multi-purpose berth with a draught of 12 metre.

Potential users of Dighi Port are Tata Power, Ispat Industries, Uttam Galva Steel, Vikram Ispat, Ashapura Minchem and Jindal Iron and Steel. Meanwhile, Dighi Port has also secured in-principle clearance from Konkan Rail Corporation (KRCL) for rail connectivity project which would link Dighi to the Mangaon rail station.

"We have already completed techno-economic feasibility study for the rail connectivity project. Inclusive of the rail link project, we will develop 1,000 acre of land under Phase I," Kalantri said.

According to him, under the Phase II of the project, the port would set up a dedicated container and liquefied natural gas (LNG) terminal at a total cost ranging between Rs 3,500 crore to Rs 4,000 crore.

"We are planning to begin work on Phase II by 2009. The dedicated shipping channel would enable us to initiate several expansion programmes. The LNG terminal will be a feasible project for us as the GAIL pipeline is just 21 km from Dighi," Kalantri added.