Essar Ports refinances Rs 405 crore debt in Essar Bulk Terminal

MUMBAI: Ruia family-promoted Essar Ports has refinanced a debt of Rs 405 crore in Essar Bulk Terminal, a dry bulk port and terminal in Hazira in Gujarat, by using the take out finance scheme of India Infrastructure Finance Company. The company said refinancing would reduce the interest rate by over 2.5% on the debt it had taken for building the 30-million tonne terminal.

Take out finance is a government scheme that allows companies to reduce their interest payment when an infrastructure project is completed and commissioned. It also helps in lowering the interest payment after the debt is refinanced.

Essar Ports, which has a total debt of Rs 4,500 crore, is also looking to use the route to reduce its interest outgo on debt for other projects.

"Essar Ports could further explore availing the benefits of such scheme for cutting costs of its infrastructure project - Vadinar Port terminal," the company said in a statement. Essar has also maintained that the company is looking to reduce interest cost this year.

In May, Essar Ports signed a deal with Port of Antwerp to sell close to 4% stake in the company for Rs 175 crore to reduce its total debt. The port is now awaiting security clearance from the home ministry after it submitted bids for developing a mega container at the Chennai Port.