MUMBAI: A consortium of JSW Infrastructure, a part of Sajjan Jindal’s JSW Group, and Srei Infrastructure Finance Ltd is set to acquire the upcoming Sterling Port in Dahej from its lenders, according to key people aware of this particular development.
The JSW-Srei combine has reached an agreement with lenders of Sterling Port, which includes Srei Infrastructure Finance, Andhra Bank and Corporation Bank according to the sources.
Sterling owes lenders Rs300 crore and has an additional Rs80 crore in dues to the Gujarat Maritime Board (GMB), the regulator for all Non-Major Ports in Gujarat. In one of the quickest resolution processes, the final bids were received last month after bids were invited from interested parties starting November 1. PwC India advised the lenders.
Sterling Port was awarded a 30-year concession to develop an all-weather, direct-berthing port for handling dry bulk, liquid bulk and container cargoes.
“We are exploring various mechanisms to recover our dues. We are open minded towards any structure, which is permitted under the regulations,” said a Srei spokesperson.
GMB had signed a concession agreement with Sterling Port for the development of Dahej Port in June 2015. In phase-I, two solid cargo terminals, a liquid cargo terminal and a container terminal would be commissioned at a cost of around Rs2,500 crore. In phase-II, one terminal each for solid, liquid and container would be added.
Ports and terminals under JSW Infrastructure in Maharashtra and Goa have an operational capacity of 33 million tonnes per annum.
Within the next four years, this is going to increase more than six-fold to reach 200 mtpa, according to the company website. India’s merchandise exports grew 30.56% to $26.2 billion in November 2017 from a year ago, while merchandise imports increased 19.6% to $40 billion.