Major Ports may raise Rs 50,000 cr loans in US dollar: Nitin Gadkari

Posted by Daily Shipping Times on 17-04-2017        Tweet

NEW DELHI: India's 12 Major Ports, as well as some shipping entities, may raise loans amounting to Rs 50,000 crore in US dollars at nominal interest rates to provide a fillip to infrastructure, Union Minister Nitin Gadkari has said.

After Jawaharlal Nehru Port Trust's (JNPT's) $400 million foreign denominated loan, another major Port Kamrajar (earlier Ennore) is in the process of raising $100 million, the Shipping, Road Transport and Highways Minister said.

This is for the first time that the Centre-owned Major Ports are raising foreign denominated loans; so far the practice has been followed only by private players.

"To boost ports and shipping infrastructure, there is no dearth of funds. Our 12 Major Ports and entities like Shipping Corporation and Dredging Corporation may take Rs 50,000 crore loan in US dollar at a very low interest rate of 2 per cent," Gadkari said.

He added: "This mode of financing at low-interest rates and natural hedging has been followed in the major ports for their infrastructure development for the first time."

An official said meanwhile that another Major Port - Kandla Port Trust is also planning to soon raise $150 million through external commercial borrowing (ECB).

JNPT had last year signed the pact with SBI and Singapore's DBS for $400 million loan, which prompted other players, besides Shipping Corporation, Dredging Corporation and Cochin Shipyard, to take the same route.