JNPT plans to increase draft to 14.5 mt

The Jawaharlal Nehru Port Trust (JNPT) expects to start work in a phased manner for increasing its draft (water-depth at jetties) by the end of 2005, chairman Ravi B Budhiraja said.

In the first phase, the port plans to increase the draft by 2 metres to 14.5 metres at an expense of nearly Rs 640 crore, he said.

"We hope to get the government nod for increasing the draft soon. We will take another six months to finalise the tender and I hope that the dredging work could start by October," he said. It will take 27 month to complete the work after its commencement, he said.

Budhiraja was speaking at the sidelines of a two-day conference on ports in India here today.

The second phase would increase the draft to about 16 metres and may cost nearly Rs 1,000 crore, he said.

The port is increasing the draft to accommodate larger ships.

In order to finalise the funding of the dredging work, JNPT has put forth a few proposals with the shipping ministry.

"We want the government to either fully finance the project or allow us to raise funds or reduce the amount from interest we would be paying to the government and the World Bank," he said.

JNPT is supposed to pay Rs 727 crore as interest to the government and the World Bank for the loan the port took when it was set up in the early 1980s. "The principal debt was paid in December 2003 while the interest of Rs 727 crore is to be paid in due course," he said.

The port is expecting some decision on the proposal for financing after the next meeting of the public investment board. "The board will meet shortly," Budhiraja said.

In case the government asks JNPT to fund the project on its own, the port plans to raise debt from the bond market. "The bond issue may not be Rs 640 crore as we may use some funds from internal accruals," he said.

Meanwhile, JNPT's third container terminal is expected to become operational in 2006, he said.

The third terminal will be operated by Maersk India and Container Corporation of India.

The port has also finalised a consultant to prepare a feasibility report for the proposed fourth container terminal. "We have received four bids for the project and we have short-listed one.

"The consultant would be approved by the ministry shortly," Budhiraja said. The fourth terminal would cost nearly Rs 2,000 crore.

From February 1, JNPT has also removed the 'congestion' surcharge and has revoked the ban on importing heavy metal scrap cargo.