Rs800 cr loan for Gammon port project
Five state-owned entities have together loaned Rs800 crore to Gammon Infrastructure Projects Ltd for setting up a Rs1,228 crore container terminal at the Mumbai port. With this, the financial closure on the project has been achieved. The terminal, when complete, will handle 1.8 million containers a year.
Institutions that have come forward to lend money to Gammon Infrastructure are public sector banks such as Canara Bank, Punjab National Bank and UCO Bank, and India Infrastructure Finance Co. Ltd (IIFCL). SBI Capital Markets Ltd acted as the financial adviser.
A joint venture between Gammon and Spanish port operator Dragados Spl. SA had won the rights in 2007 to develop and operate the container terminal for 30 years at Mumbai port to meet demand for container traffic at Indian ports.
Indira Container Terminal Pvt. Ltd, the special purpose vehicle incorporated by the consortium of Gammon and Dragados, had signed a licence agreement with the Mumbai Port Trust to execute the project.
The first phase of the new facility with a capacity to handle 1.2 million standard containers a year, is expected to start operations in 2010.