India’s largest port project eyes ₹300 bn debt raise to fuel Modi’s infrastructure push
Mumbai: The company building what is set to become India’s largest port has kicked off efforts to raise up to ₹300 billion ($3.5 billion) in long-term debt, providing lenders with a chance to participate in one of the signature infrastructure ventures under Prime Minister Narendra Modi’s government, The Economic Times reported.
Located a few hours north of Mumbai, the Vadhvan Port Project Ltd. is tapping both onshore and offshore markets to raise the capital, with plans to structure the debt in two phases and with tenors ranging between 15 and 20 years.
“We have started the process of raising debt which will happen in two phases,” said Unmesh Sharad Wagh, chairman of the Jawaharlal Nehru Port Authority (JNPA), which owns 74% of the company.
The remaining 26% is held by the Maharashtra Maritime Board.
The $9 billion Vadhvan port project is among the most ambitious in Modi’s infrastructure agenda, with the foundation stone laid last year.
Once completed, possibly by the end of the decade, the port is expected to handle up to 23 million container units annually, potentially making it one of the ten largest ports in the world.
According to Wagh, IDBI Capital has been appointed as the advisor for the first phase of fundraising, targeting ₹220 billion.
The funds are to be disbursed over the next five years, and request for proposals (RFPs) from potential lenders will be issued between October and December this year.
In addition to the debt component, JNPA and the Maharashtra Maritime Board plan to inject about ₹130 billion in equity.
Wagh, who also serves as chairman and managing director of the Vadhvan Port Project, added that talks are underway with multilateral financial institutions.
He also noted that work is progressing on the reclamation of 1,200 hectares of land for the project.
The government has made strengthening India’s maritime infrastructure a key focus, as outlined in the Union Budget earlier this year which proposed the creation of a Maritime Development Fund to back port-related initiatives through both equity and debt support.
One of Vadhvan’s key advantages lies in its natural depth of 20 metres, which will allow it to accommodate the world’s largest container vessels—many of which currently bypass Indian ports due to depth limitations.
The port is also envisioned as a critical gateway for the proposed India-Middle East-Europe Economic Corridor, a strategic project aimed at enhancing trade connectivity between Asia, the Gulf, and Europe.
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