JNPT, APSEZ & Veritas Group asked to improve financial bids for Dighi Port

Posted by Daily Shipping Times on 08-01-2019        Tweet

MUMBAI: The Resolution Professional (RP) for Dighi Port Ltd has asked Adani Ports and Special Economic Zone Ltd, Jawaharlal Nehru Port Trust (JNPT) and Veritas Group to improve their financial bids for the debt-laden port company, which is facing insolvency proceedings under new bankruptcy law.

Port industry sources see this as an indication that the initial financial terms offered by the three bidding groups were below expectations.

The entity winning the bid, according to the document inviting resolution plan, will have to deposit more than Rs 2,100 crore, a level considered “steep” given that, Dighi Port is only worth around Rs 800 crore, according to industry sources.

Dighi owes Rs 2,500.77 crores to a clutch of 16 banks led by Bank of India.

Dighi Port, located 42 nautical miles from Mumbai Port Trust, was awarded a 50-year concession by the Maharashtra Government to develop and operate a port on the banks of Rajpuri creek in three phases. The first phase of the port with a capacity to load 30 million tonnes of cargo (mt) has started partial operations from two multi-purpose berths that can load, coal, bauxite, steel coils and containers.

The port is strategically located and serves the immediate hinterland of Maharashtra and hinterland of North Western /South Central India.