Navi Mumbai: Jawaharlal Nehru Port Authority Appoints IDBI Capital As Transaction Advisor To Raise Funds For Controversial Vadhavan Project

Navi Mumbai: Jawaharlal Nehru Port Authority Appoints IDBI Capital As Transaction Advisor To Raise Funds For Controversial Vadhavan Project

The Port authorities and IDBI Capital has also held preliminary discussions with potential funding agencies to raise funds for the mega project.

Bhalchandra ChorghadeUpdated: Tuesday, December 26, 2023, 05:27 PM IST
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Jawaharlal Nehru Port Trust | Wikimedia Commons

The Jawaharlal Nehru Port Authority (JNPA) has appointed IDBI Capital Markets and Securities Ltd as the transaction advisor to raise funds for the ambitious Vadhavan Port. The Port authorities and IDBI Capital has also held preliminary discussions with potential funding agencies to raise funds for the mega project.

“While the initial funding will come from the equity contributions of the Port promoters, the debt will be raised in a phased manner subject to finalisation of project structuring and timeline of revenue generation on the back of award of concessions to private firms for running cargo terminals,” a senior JNPA official said not wishing to be named.

Port awaits environmental and coastal clearance

JNPA will develop Vadhavan Port in Dahanu taluka of Palghar district with the participation of the Maharashtra government and Maharashtra Maritime Board (MMB). A memorandum of understanding (MoU) was signed on June 5, 2015 to set up a new port at Vadhavan as a major port to be notified under the Indian Ports Act, 1908 by the Government of India. This port will be jointly implemented by JNPA and MMB with a shareholding of 74 per cent and 26 per cent respectively. The port will be developed on the Landlord Port concept.

The proposed Port is currently awaiting environmental and coastal clearance from the Ministry of Environment, Forests & Climate Change (MoEF&CC). A committee of the Pollution Control Board recently held a public hearing to address environmental concerns for the Greenfield port. The hearing was held in the presence of Deputy Collector of Daman, Dadara & Nagar Haveli, which was attended by the various stakeholders and representatives of fisherman community.

JNPA identified sand borrow pit at around 50 km to 60 km in the Arabian Sea from the proposed Vadhavan Port and about 50 km from Daman Coast for obtaining 200 Million CuM sand by dredging to create land at the proposed Vadhavan Port. In the public hearing held as per the directions of the MoEF&CC, various concerns raised by the stakeholders were addressed and the hearing went smoothly. The minutes of the public hearing would be forwarded to MoEF&CC to obtain comprehensive Environment Clearance for the development of Vadhavan Port.

Environmentalists oppose the port

The Rs 76,220 Crore Greenfield Port at Vadhavan in Dahanu Taluka of Palghar district has been opposed by the environmentalists claiming the port is an ecological disaster in waiting.

JNPA had signed a memorandum of understanding (MoU) worth ₹20,000 crore with global logistics operator DP World at the Global Maritime India Summit in Mumbai, for the development of the Vadhavan port. JNPA said the Vadhavan port is JNPA's one of the most ambitious projects that will be able to handle almost 24 million TEUs, making it among the top 10 in the world.

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