The Hindu Business Line : Gangavaram Port achieves financial closure

A CONSORTIUM of 13 banks led by State Bank of India have committed Rs 1,170-crore loan to Gangavaram Port Ltd (GPL), for developing the `greenfield' Gangavaram Port near Visakhapatnam in Andhra Pradesh.

The financial closure for the loans was completed recently. GPL is a special purpose company promoted by Mr D.V.S. Raju for developing and operating the Gangavaram Port.

The financial deal is structured by SBICapital Markets Ltd (SBICAP), which is the sole financial advisor & arranger to GPL for the transaction. The transaction is the first of its kind in the country, as it is the largest for a merchant greenfield port financing on non-recourse basis at a leveraging of 69:31, the bank claimed in a press release.

Gangavaram Port would be developed in three phases over the next 15-20 years with a cargo handling capacity of over 100 MTPA (million tonnes per annum). It would be the deepest port with facilities to berth and handle super-cape size bulk carriers. The port would be an all-weather, multi-purpose with hinterland rail/road connectivity, storage areas and high mechanisation in cargo handling.

It would be among the truly next generation sea ports in the country. Its importance also lies in the fact that the Visakhapatnam region on the East coast has been recognised as the gateway for increasing trade with China and the ASEAN countries.