Jaigad, Maharashtra: Industrialist Sajjan Jindal on Saturday said his JSW Group will invest Rs7,000 crore more in the ports sector over the next three years to create assets in the country as well as abroad.
The company is also looking at diluting up to 15% stake in the ports operating company, JSW Infrastructure, to a private equity player soon, and take it public by 2019. “We will be investing ₹ 9,000 crore more in the ports sector till 2020 (including the ₹ 2000 crore already invested)," he told reporters at JSW Infrastructure-run flagship port here in Ratnagiri district.
The company has already invested Rs2,000 crore in the project at Jaigad and the overall investment plan for the company includes Rs2,000 crore for capacity expansion in Jaigad, Jindal added.
Of the remaining Rs5,000 crore of investments (excluding the Rs4,000 crore in Jaigad), Jindal said the company is looking at putting up four berths in Paradip that will have a 50 million tonnes per annum (mtpa) capacity and a greenfield project in Fujairah in the UAE.
The Rs4,000-crore Jaigad Port project has a capacity of 40 mtpa now, which will be doubled by 2020 and raised further to 125 mtpa by 2025, he said. At the company level, total capacity target is 200 mtpa by 2020, Jindal said, adding the port now handles dry bulk cargo but has plans to enter container handling.
One of the biggest opportunities that the port is eyeing is the proposed public sector mega refinery by Indian Oil Corp. Ltd- Hindustan Petroleum Corp. Ltd-Bharat Petroleum Corp. Ltd in the Konkan belt of Maharashtra, even though the exact location is not finalised yet.
Jindal said JSW is “pitching" to act as a “captive port" for the proposed refinery project which will host the very large crude carriers to ferry in crude, and also ships to evacuate refined products.
The JSW group has tied up with the Hiranandani Group, which is investing up to Rs4,000 crore to construct an LNG terminal at the Jaigad Port and then evacuate the cargo through a dedicated pipeline that will be connected with GAIL’s pipeline at Dabhol.
It can be noted that the Ratnagiri Gas & Power (formerly Dabhol Power) does the same work already, but Jindal is confident that the growing market will ensure there are opportunities for all.