The Port of Jawaharlal Nehru (Nhava Sheva), India’s largest container handler, plans to raise up to Rs. 2,000 crore (approximately $370 million) by selling tax-free bonds to help pay for capacity expansion projects.
“The net proceeds will be primarily used for dredging works to deepen and widen the Mumbai harbour channel and JN Port’s navigational channel. These would also be used for capital expenditure for other projects, in relation to the port operations,” port chairman L. Radhakrishnan said.
The bond offering opened March 11 and closes March 15.
The Nehru authority in August 2012 signed a contract with Royal Boskalis Westminster for the work to widen and deepen the fairway after the Dutch company’s bid turned out to be the lowest of the four prequalified bidders. The $290 million project is scheduled for completion by September next year.
With dredging, the port will be able to accept container ships with a draft of 14 meters (46 feet).