Phase I of the Gangavaram port project, near Vishakapatnam in Andhra Pradesh achieved financial closure with a consortium of
13 banks led by the State Bank of India committing long term
debt of Rs.1,170 crore to Gangavaram Port Ltd.
GPL, promoted by DVS Raju, is the special purpose
vehicle for developing and operating the port. The total cost of the Phase I is estimated to cost
Rs.1,700 crore.
Development in Phase I comprises five berths and
associated infrastructure for handling iron-ore coal, other bulk and general
cargo and is scheduled to be operational by end-2007.
The deal has been structured by the SBI Capital
Markets Ltd (SBICAP). The transaction is the largest transaction yet in India of
a merchant greenfield port financing on non-recourse basis at a leveraging of
69:31.
The port, which will be completed in three phases
in the next 15-20 years, is an all weather deepwater multi-purpose port and will
have cargo handling capacity of over 100 million tpa.
Also See:
Vizag
steel gives land to AP for Gangavaram port (26-Aug-04)