JSW Infrastructure, part of the JSW group, has lined up plans to raise its Jaigarh port capacity five-fold to 50 million tonne from the current 10 million tonne, BVJK Sharma, joint managing director and CEO, JSW Infrastructure, told DNA.
Sharma said, “We had raised money from the market for the Jaigarh port envisaging a 5 million tonne capacity but added 10 million tonne in the first phase. The second phase will see the capacity double to 20 million tonne.”
The company raised Rs 500 crore as debt for the project and put Rs 177 crore as equity. A 1,200 megawatt power plant is also coming up at the port.
Under the third phase, the port capacity will be increased to 50 million tonne per annum, he said.
Sharma said the company is developing road, railway and inland waterway networks to facilitate cargo movement from the Jaigarh port which is located in Ratnagiri. The plan to build a railway line from Jaigarh to Bhoka in Ratnagiri is expected to cost Rs 350 crore.
He said that the Maharashtra government has asked the Konkan Railway to conduct a survey for a railway line from Jaigarh to Ratnagiri. The company plans to extend this line to Kolhapur over a period of time at a cost of Rs 1,000 crore.
Sharma said, “The state government has indicated that it may join the entire project with 40% equity and we are ready to take up to 30%. Other companies have also shown interest in picking up a stake.” Also, JSW Infrastructure has started developing a 43 km road network touching national highway number 17.
“It will be a two-lane highway and will cost Rs 42 crore. Its expansion to four-lane will depend on the survey, but a ballpark figure could be Rs 80 crore.”
Coal will form 50% of the total cargo to be handled at the Jaigarh port and the rest will be fertilisers, sugar and bauxite among others.
“We have power plants in Maharashtra and coal will come from this port. I met the fertiliser association recently and they are interested in getting their cargoes to Jaigarh port. Bauxite miners have also approached us for exporting the mineral from our port,” he said. Sharma said that bauxite miners are ready to ship at least half-a-million tonne of bauxite from our port and fertiliser makers also are ready to bring two ships to the port.
“Revenues won’t be a problem and we expect earnings of Rs 100 crore with the 10 million tonne capacity.”
Majority of revenues, apart from the group’s coal import, will come from fertiliser, followed by minerals and sugar.