Infrastructure development company Marg Constructions has lined up Rs 1,120 crore investments for the development of the Karaikal Port.
MUMBAI: Infrastructure development company Marg Constructions has lined up Rs 1,120 crore investments for the development of the Karaikal Port, its wholly-owned subsidiary.
It has also forayed into dredging with the acquisition of a cutter suction dredger named MARG Cauvery, for Rs 52 crore, funded by Indian Bank.
Last month, the company signed an MoU with Malaysian firm Pembinaan Redzai Sdn Bhd for the management of the Karaikal Port. The agreement looks at sharing 3-4% of the revenue with the management company, depending on the milestones achieved.
Marg has received concession agreement for seven berths at Karaikal Port, with a capacity of 14 million tonnes and plans to start with two in the phase one, expected to be operational by November 2008.
Of the 425 crore planned capex for phase one, Marg has already invested Rs 140 crore in berth construction and break water.
The berths have a 14 metre draft and will be able to serve ships as large as 60,000-1,00,000 tonnes.
“We have already raised capex for phase one through consortium of banks and plan to use the same source for phase two as well,” said GRK Reddy, chairman and managing director, MARG Constructions.
A capex of Rs 700 crore has been planned for phase two.
With the presence of cement companies like Dalmiya Cement and Madras Cement in the region, Karaikal Port sees an assured cargo traffic of about 4.5 million tonnes.
MARG Cauvery, a non-propelled cutter suction dredger that Marg acquired, would be able to dredge at depths in the range of 5 to 25 metres.
Reddy said, “We plan to develop dredging as a separate business vertical and are working on details for substantial further investment.
The dredger would be deployed, for the initial seven months, at the Karaikal Port and Marg is already in talks with companies like the Dredging Corporation of India Ltd for leasing it out, once it completes work at Karaikal.
In the next phase of the project, the company expects to invest around Rs 60-70 crore and would acquire a hopper dredger.
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