Power Finance Corporation (PFC) has expressed its willingness to underwrite the entire debt of Rs 272.83 billion for the construction of a mega port at Vadhavan near Dahanu in Maharashtra?s Palghar district.

They mentioned that if and when the deal is finalized, it would mark the largest debt financing for a port project in the country.

It was stated that the planned mega port would be designed to handle around 298 million tonnes (mt) of cargo annually, requiring an investment of Rs 762.20 billion.

During a meeting between R R Jha, Director (Projects) and his team from the Power Finance Corporation, and Unmesh Wagh, Deputy Chairman and Chairman in Charge of Jawaharlal Nehru Port Authority, discussions revolved around financing for the port project. It was noted that the project is pending final approval from the Union Cabinet, having already secured environmental and coastal regulation zone clearance, as well as backing from the Public Investment Board.

An official familiar with the matter commented, ?PFC?s commitment to finance the entire debt amount signifies a pivotal moment for the development of Vadhavan Port.?

Power Finance Corporation, categorised as an infrastructure finance company by the Reserve Bank of India, is a Maharatna PSU and a Non-Banking Finance Company (NBFC).

The Jawaharlal Nehru Port Authority (JNPA), a state-owned entity overseeing the construction of Vadhavan Port, has engaged IDBI Capital Markets and Securities Ltd as the transaction advisor to raise funds for the project.

Under the landlord model, as per government policy, the new port will be developed by Vadhvan Port Project, a joint venture between JNPA (with a 74 percent stake) and Maharashtra Maritime Board (holding 26 percent equity), in two phases.