Japan International Cooperation Agency considers providing funding for Vadhavan Port

State-owned lender Power Finance Corporation Ltd (PFC) has offered to underwrite the full debt of Rs 27,283 crore for a new port construction project that aims to handle around 298 million tonnes of cargo per year with an investment of Rs 76,220 crore. Officials from the Japan International Cooperation Agency (JICA) India office recently met with Jawaharlal Port Authority officials to discuss funding for the project, expressing interest in the structured implementation plan.

The new port project, being developed by Vadhavan Port Project Ltd, a joint venture between Jawaharlal Port Authority and Maharashtra Maritime Board, is awaiting cabinet clearance. The project will be developed in two phases under the landlord model, involving the development of common port infrastructure by the joint venture company and outsourcing cargo handling infrastructure to private firms.

The total project cost of Rs 43,622 crores will include contributions from the Ministry of Railways and the Ministry of Road Transport for external connectivity. The remaining cost will be funded by private operators selected by Vadhavan Port Project Ltd. The project will be funded through a debt-equity ratio of 70:30, with JNPA and MMB providing corporate guarantees to secure funding. JNPA’s financial strength and track record of fund-raising, along with MMB’s debt-free operations, are expected to enable the successful funding of the project.

Source .