India's largest port builder to raise Rs. 30,000 crore (US$ 3.46 billion) for Vadhvan project

Vadhvan Port Project Ltd., set to become India’s largest port, plans to raise up to Rs. 30,000 crore (US$ 3.46 billion) in debt financing, offering lenders a stake in one of Prime Minister Mr. Narendra Modi’s key infrastructure initiatives. The company intends to secure debt with tenors of 15 to 20 years through both onshore and offshore markets, according to the chairman of the Jawaharlal Nehru Port Authority (JNPA), Mr. Unmesh Sharad Wagh, which holds a 74% stake in the project. The Maharashtra Maritime Board owns the remaining 26%. The Rs. 78,057 crore (US$ 9 billion) port, whose foundation stone was laid last year, is expected to be completed by the end of the decade with a capacity to handle 23 million container units, ranking it among the world’s 10 largest ports.
IDBI Capital has been appointed to advise on sourcing long-term lenders, targeting at least Rs. 22,000 crore (US$ 2.54 billion) in the initial funding round, to be disbursed over five years, with proposals sought from lenders between October and December. JNPA and the Maharashtra Maritime Board will jointly contribute about Rs. 13,000 crore (US$ 1.5 billion) in equity. The project involves reclaiming 1,200 hectares of land and is also in talks with multilateral agencies. Vadhvan Port’s natural depth of 20 metres will accommodate some of the largest container ships that currently bypass India due to insufficient port depths. It is also expected to serve as a key node in the India–Middle East–Europe Corridor, enhancing trade linkages in the region. Strengthening maritime infrastructure remains a government priority, supported by the newly proposed Maritime Development Fund to aid the sector with financial instruments.

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