The Hindu Business Line : Slowdown shaves 10% off Dighi port project cost

Pune, Nov 21 In the proverbial silver lining to the slowdown cloud, the cost of building Dighi Port, billed Maharashtra’s first greenfield port to receive all necessary clearances and approvals, is down by nearly Rs 100 crore, or around 10 per cent of the Rs 1,200 crore price tag attached to the first phase of the project.

“I don’t wish for a slowdown, but thanks to the drop in cement and steel prices, the cost of completing the first phase is down by Rs 80-100 crore,” Mr Vijay Kalantri, Chairman and Managing Director, Balaji Infra Projects Ltd, the major promoter of the port, told Business Line. “I think this is the time to expedite all infrastructure projects,” he quipped.

Phase one of Dighi Port involves construction of one berth each for oil, container and multipurpose use and two bulk berths. This project is on track and will be completed by May 2010, Mr Kalantri said, adding that two berths will become operational by May 2009. Export of bauxite has already begun from an existing jetty here.

Dredging under way

According to the contract awarded to Dutch company Van Oord, dredging operations for 2 million tonnes are under way and will be completed by May 2009, enhancing the current depth of 5 m to 14.5 m by May 2009, Mr Kalantri said.

Located 170 km by road and 45 nautical miles by sea south of Mumbai, the port is being developed as a multi-cargo all-weather port which would be operational round the year and round the clock, with deep draft direct berthing facilities.

Being developed in association with the Government of Maharashtra on a build, own, operate, share and transfer (BOOST) basis, the project is being financed with 30 per cent equity and 70 per cent debt. The equity portion for phase one has been fully subscribed, Mr Kalantri revealed, with the State Government contributing 11 per cent, infrastructure development company, IL&FS raising 20 per cent and the rest by promoters Balaji Infra.

The second phase involves building an additional five berths at Dighi port and a railway line. The project cost has been placed at an additional Rs 1,000 crore.

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