The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) have signed a $131 million loan to upgrade the container terminal at Jawaharlal Nehru Port.
The financing package includes $61.4 million from ADB’s ordinary capital resources and $69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.
The Jawaharlal Nehru Port container terminal currently has 2 berths with total length of 680 metres and 15 metres draft with backup area of 54.74 hectares.
According to a recent release, the funds will be used to upgrade existing berths and yards at the port’s container terminal in Navi Mumbai, Maharashtra, and install additional energy-efficient equipment – such as electric quay cranes.
These upgrades are slated to expand the terminal’s container handling capacity and attract vessels operating on international shipping lanes.
ADB Vice-President for Private Sector Operations and Public-Private Partnerships, Ashok Lavasa, said that “enhancing countries’ capacity for trade is critical to the region’s recovery from COVID-19 and its ongoing prosperity.”
“Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerised cargo terminal operations.”
NSFTPL is a special purpose vehicle jointly owned by J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.
The loan agreement is the largest one signed by NSFTPL so far with the purpose to aid in India’s goal of becoming a $10 trillion economy by 2035.
“We are absolutely delighted to sign the Financing Agreement with ADB, which is the largest loan agreement signed by us so far, and we appreciate ADB’s commitment and agility in bringing this deal to a smooth closure in record time,” added NSFTPL Board member and JMBPL Managing Director Dhruv Kotak.