Mumbai: The government has not approved Jawaharlal Nehru Port Trust’s (JNPT) proposal to raise Rs 1,500 crore through infrastructure bonds this financial year prompting the port to borrow via loans at higher rates, a top port official said.
In August, India’s largest container port had said it would raise the fund through infrastructure bonds this year to develop dredging projects.
However, JNPT chairman L. Radhakrishnan said on Thursday the port would now have to resort to borrowings at higher interest rates to finance the project.
“Now we will go for a massive borrowing and finance a deal, (but) we will take a bigger hit,” Radhakrishnan said on the sidelines of a CII logistics summit.
The dredging project was on track and the port will have to pay around 13% as interest to borrow from financial institutions, he added.
The port trust has “substantial cash reserves”, but will use the money to fund land acquisition for a fourth terminal at Mumbai, he added.