L&T arranges funds for Kattupalli project

L&T arranges funds for Kattupalli project

Bangalore: India’s biggest engineering firm, Larsen and Toubro Ltd (L&T), has tied up funds for erecting the first phase of a shipyard-cum-port complex at Kattupalli near Ennore, Tamil Nadu, costing Rs3,375 crore.

“The debt portion of Rs2,531 crore for the project has been tied up," K. Venkatesh, executive vice-president (developmental projects) at L&T, said over phone from Chennai.

L&T Infrastructure Finance Co. Ltd, a subsidiary, arranged debt for the project through a consortium of banks, he said, without naming the lenders.

L&T will contribute Rs844 crore of equity for the project.

The shipbuilding facility, billed as India’s biggest, has got environmental clearance from the Union government. The Tamil Nadu government has allocated land for the shipyard complex.

The project work is almost 20% complete and all the facilities such as breakwater, channel, ship lift, fabrication and manufacturing shops, berths, and jetties will be commissioned between December 2010 and January 2012, Venkatesh said.

L&T is already receiving business for the yard. In March, the firm said it had won a Rs977 crore contract from the defence ministry for the design and construction of 36 high-speed interceptor boats for the Indian Coast Guard.

“Some of these boats will be manufactured at the Kattupalli yard," Venkatesh said.

The complex will have facilities for building vessels for the defence sector, commercial ships, including oil super tankers, specialized cargo ships for liquid/gas transportation, and cruise vessels, L&T chairman A.M. Naik had said earlier.

It will also have the capability for building offshore platforms and floating production-cum-storage facilities for the oil and gas sector.