Power Finance Corporation to underwrite Rs 273 bn debt for Vadhavan Port
PORTS & SHIPPING

Power Finance Corporation to underwrite Rs 273 bn debt for Vadhavan Port

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.

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.

Next Story
Infrastructure Energy

Samridh, CEID Launch High-Capacity Biogas Plant in Moradabad

Samridh Bioenergy has broken ground on a 12 TPD compressed biogas (CBG) plant in Moradabad, Uttar Pradesh, under the MNRE’s National Bioenergy Programme. Spread across 12 acres, the plant will process 270 tonne of organic waste daily and generate 30,000 cubic metre of biogas per day.CEID Consultants and Engineering Pvt Ltd has been appointed as the EPC contractor, responsible for the complete design, procurement, and construction of the plant. Equipped with four multi-feed digesters, the facility will accept a mix of press mud, cow dung, chicken litter, and vegetable waste, supporting contin..

Next Story
Real Estate

Delhi Micro-Markets Drive Up Housing Prices: Grihum Study

A new study by Grihum Housing Finance reveals that the rise of micro-markets across Delhi-NCR is fuelling real estate price appreciation, especially in the affordable housing segment. Key drivers include renewed post-pandemic interest, migration trends, and government schemes like PMAY.According to the study, over the past two decades, floor rates have risen 267 per cent, from Rs 1,500 per sq ft in 2005 to Rs 5,500 in 2024. In the same period, land rates surged 492 per cent, from Rs 1,300 to Rs 7,700 per sq ft. The sharp increase highlights strong capital appreciation in Delhi’s emerging loc..

Next Story
Resources

Covestro Develops PCR Polycarbonates from End-of-Life Headlamps

Materials manufacturer Covestro has launched post-consumer recycled (PCR) polycarbonates made from end-of-life automotive headlamps, in a move aimed at strengthening circularity in the auto industry. These TÜV Rheinland-certified grades, containing 50 per cent recycled content, are now commercially available for new automotive applications.Developed under a joint programme led by GIZ, with Volkswagen and NIO as key partners, the recycled material is currently being validated for use in future vehicle models.""This new line of polycarbonate represents a significant step in supporting the autom..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?