JNPT seeks Rs1,000 crore through port infrastructure bonds

Jawaharlal Nehru Port Trust (JNPT), India’s busiest container port, is seeking around Rs1,000 crore from the Union shipping ministry’s proposed Rs5,000 crore port infrastructure bonds to finance its channel deepening plan.

The funds were to be raised as a soft loan from the Japan International Cooperation Agency (JICA), but due to a likely procedural delay in securing the loan, the port is looking at an alternate avenue, JNPT officials said.

JNPT plans to increase its draft from the current 12 metres to around 14.5 metres under the first phase of its expansion at a cost of Rs1,400 crore.

“We have been advised not to seek funding through JICA, as the funds are expected to be delayed. In turn, we are now considering an option to seek funds from the infrastructure bonds that the ministry plans to introduce,” said an official from JNPT who did not wish to be quoted.

The JICA loan would first require a pledge to be signed between the two countries, which would then be followed by a series of inspections, which may take more than a year, the official said.

Union shipping secretary K Mohandas said, “In case of a delay this has been suggested as one of the options. We don’t know if there would be any delay in the JICA loan.”

The estimated investment for the dredging project is pegged at around Rs1,400 crore. Mumbai Port Trust, which owns the channel, is expected to fund around 10-12% of this total investment, for which talks are underway.

A JICA spokesperson refused to disclose any details on the project as the agency is currently in discussions with the Indian government.

Meanwhile, JNPT has floated tenders for the dredging project and conducted a pre-request for qualification meeting. It plans to start dredging by December.