Will issue 10-year tax-free bond
The Ennore Port Ltd (EPL) will come out with a 10-year tax-free bond to raise about Rs.1,000 crore to meet its major ongoing projects. It would be launched during the third week of January 2013.
A decision to this effect was taken at a recent meeting of Ennore Port Advisory Committee. Government had given its approval and preparation for pre-launch activities is on, said S. Velumani, EPL’s Chairman-cum-Managing Director.
Talking to The Hindu , he said the amount raised would be used to fund the ongoing capital dredging work of Rs.400 crore, rail and road connectivity of Rs.150 crore, setting up third coal berth for TNEB at Rs.150 crore and for acquiring 750 acres of land from Salt department costing Rs.300 crore.
“We are seeking land from the Salt Department to meet future expansion needs of the port by building supporting infrastructural facilities for port users, customs and immigration authorities. Besides, the amount would be used for dredging and building berths for container, LNG, coal and car terminals,” he said.
At the meeting it was decided to repay the loan of Rs.350 crore obtained from Chennai Port Trust (ChPT) in the initial years to build the infrastructure and subsequent projects at EPL. The amount would be met through internal resources and commercial borrowings.
To avoid congestion, EPL and ChPT had decided to develop a ‘marine highway’ in which barges would be used to move containers between the two port by developing two terminals at a cost of Rs.163 crore.
The optimal carrying capacity would be six lakh twenty foot equivalent units of containers per annum.
The pre-feasibility study had been taken by EPL and the project would be carried out in the private-public-partnership mode, he said.
After serving the industry for 35 years, Mr. Velumani will be retiring on Friday. He took charge as chairman and managing director of EPL on July 30, 2006.
The bond will be launched during the third week of January 2013 Preparation is on for pre-launch activities
The bond will be launched during the third week of January 2013
Preparation is on for pre-launch activities