JNPT to raise Rs 1,500 crore through tax free bond issue

MUMBAI: Country's biggest container port JNPT on Thursday said it will raise Rs 1,500 crore through a tax free bond issue this fiscal for undertaking dredging works.

The money will fund the first phase of a Rs 5,500 crore dredging project to increase the draft of the Mumbai harbour's channel, a top official said.

"We can issue infra bonds of up to Rs 5,000 crore and we will be raising Rs 1,500 crore before March," Jawaharlal Nehru Port Trust's Chairman L Radhakrishnan told reporters on the sidelines of a FICCI conference here.

It will raise Rs 500 crore through 10 year bonds and the remaining Rs 1,000 crore through 15 year maturity bonds, he added.

JNPT is undertaking a two-phased project of dredging which will increase the draft of the channel to 17 metres from the present 11 metres.

The first phase will be completely funded through the bond issue while the JNPT is contemplating multiple options to fund the second phase of Rs 4,000 crore.

It has received five bids for the first phase, Radhakrishnan said, adding work is expected to start by November and the JNPT is aiming to complete it in two years.

The JNPT also plans to develop a Rs 4,000 crore special economic zone spread over 750 acres near the port situated on the east of downtown Mumbai, he said.