JSW Infra lines up Rs10,000 cr to expand Jaigarh Port in 5 years
Sajjan Jindal-led JSW Infrastructure has undertaken a major drive to expand its Jaigarh Port, taking the current 15 million tonnes capacity to 65 million tonnes with seven terminals, that would include an LNG terminal, a container terminal and a petroleum terminal.
The plan would involve a total investment of Rs 10,000 crore over the next five years. The company has tied up with Hiranandani Energy (H-Energy), a subsidiary of real estate firm Hiranandani Group, to set up an 8 million tonnes per annum re-gassification plant at the port and a pipeline facility with GAIL to cater to the huge LNG demand.
A person close to the development told Financial Chronicle that the company was in the process of signing a formal concession agreement with H-Energy for around 25-30 years. The re-gasification plant will ensure consistent supply under a tolling model, which would allow gas customers the flexibility to import LNG directly from the international market at a competitive price and on flexible terms.
The project will require an investment of close to Rs 6,000 crore by H-Energy, and would include a pipeline facility to be set up with GAIL.
Hiranandani Energy recently entered the energy business and is setting up another 6 million tonnes floating re-gasification offshore LNG plant on the coast of Digha in West Bengal with an international player to target the West Bengal and later the Assam market through a pipeline shared with Bangladesh, the company said in its website.
JSW Infrastructure is also in discussion with serious international players to set up a container terminal with 1.2 million twenty feet equivalent (TEU) capacity per annum. The work on the terminal would start once the connectivity issues are resolved.
The company is providing a 35 km rail connectivity through a separate special purpose vehicle in collaboration with Maharashtra Marine Board. Besides, the company is also setting up road connectivity.
The port will also have a petroleum terminal, a multi-purpose terminal and a barrage berth. The petroleum terminal will have an annual capacity of 4 million tonnes and would be on sub-concession for 30 years. Talks are on with international players on this, said the person referred to earlier. At present, the port has two berths and handles bulk capacities in coal, limestone, foodgrains and cement.
“On April 16, the first capsize vessel will come calling at our port,” said BVJK Sharma, managing director of JSW Infrastructure. “We would need an investment of close to Rs 2,500 crore on an immediate basis and have applied for a loan for our expansion work. The rest of the investment would be bought in by the players setting up the terminals on concession basis,” Sharma said.