IPL to invest 1,500 crore for setting up a greenfield port

IPL to invest 1,500 crore for setting up a greenfield port

New Delhi: Fertiliser major Indian Potash Ltd (IPL) has decided to foray into the infrastructure sector with plans to invest upto 1,500 crore for setting up a greenfield port in Gujarat, a top company official has said.

IPL, which is a leading importer of di-ammonium phosphate (DAP) and muriate of potash (MOP), will soon apply for the government’s approval for the port project.

“We are planning to establish a greenfield port in Kuda, near Bhavanagar district in Gujarat with an investment of 1,200-1,500 crore," IPL managing director P S Gahlaut told PTI.

The company will soon be applying for various port clearances with the government of India and Gujarat, Gahlaut added.

According to Gahlaut, there are a total of 21 clearances that are to be sought before starting the project.

“We will submit the report to the Gujarat government this month and will then await the green signal from them," he said.

IPL has so far not chalked out any plans on how it seeks to raise the investment required for the project.

“We will be discussing the issue (of investment) with our board," Gahlaut said.

An important aspect of IPL’s operations is its port operations. By virtue of being in the trade for a long period and handling huge quantities, the company has established an efficient port handling operation, Gahlaut noted.

“Setting up a port was a logical step for us as we already have a long experience in port handling operations," he added.

IPL is engaged in import and trading of fertilisers like MOP, DAP and urea. It had imported around 9.4 million tonnes of fertilisers in 2010-11 fiscal.