JSW Infrastructure, a part of Sajjan Jindal-led JSW Group, will be investing Rs 2,000 crore over the next two years to double its cargo handling capacity to 30 million tonnes per annum, a top company official has said.
“We have spent Rs 1,000 crore and will be investing another Rs 2,000 crore in two years,” JSW Infrastructure joint managing director and chief executive BVJK Sharma told PTI.
He said the company, which operates assets in Maharashtra (Jaigad and Dharamtar) and Goa (South West Port, near Vasco da Gama), has an operational capacity of 15 million tonnes per annum, which will go up to 30 million tonnes per annum with the investment.
He, however, did not share details of how the funds will be arranged.
Over a longer term, the company plans to take the capacity up to 200 million tonnes per annum by 2020.
The company is also looking at port assets on the East Coast.
Two of the ports it operates — at Jaigad and Dharamtar — are close to a thermal power plant and a steel plant, respectively, of the group.
However, Sharma said the share of ‘non-captive’ or third-party cargo handled by the port is over 60 per cent at present, which it hopes to bring down to below 50 per cent in a few years.
Last year, captive cargo accounted for only 4 million tonnes of the 10 million tonnes cargo which was handled, he said.
To give a fillip to port connectivity with the hinterland, the firm recently entered into an agreement with the Railways and the Maharashtra Maritime Board to build a 33.7-km railhead with the Konkan Rail network, at an investment of Rs 771 crore.
Out of the estimated Rs 771 crore investment, Rs 191 crore will be equity and the rest will be debt, Sharma said, adding with a 20-meter natural draft, the Jaigarh Port has the deepest draft in the country.
JSW Infrastructure will be the majority partner in the specially created company for the railhead.
The Jaigad Port has two operational berths handling bulk cargo, and the company has plans to take this up to 10 berths as part of the second phase of development which will include catering to a variety of cargos including container.
Recently, Jindal had said the group was targetting Rs 500 crore income from its ports operations this fiscal, up from Rs 350 crore last fiscal and handle 200 million tonnes cargo capacity by 2020.
“We expect to clock Rs 500 crore in operational revenue this fiscal year, up from Rs 350 last fiscal from our three ports. Also, we have an ambitious plan to have 200 million tonnes cargo capacity at ports by 2020,” chairman and managing director Sajjan Jindal had said.
To achieve the ambitious 200 MT cargo capacity, Jindal said the company was open to acquisitions and is keen on the East Coast.