The company said in a statement that the final shareholder's agreement is expected to be signed in two months once the equity structure is finalised. However, the consortium will play a lead role in the project with a majority stake in the equity. A portion of the equity is reserved for port users and financial institutions, it stated.

KPCL had submitted a project report to the state government during January 1998 and also reworked the financials as asked by the government. The company is awaiting the final approval from the government. The revised cost of the project will be Rs 1,423 crore which will be funded through debt and equity in the ratio of 70:30. The British consortium has already completed the marketing due-diligence on the project, the release said.

Theconsortium will include four companies -- Portia Management Service, a largest port operator in the UK; Edmund Nutall , one of the largest engineering and construction companies in Europe; Larsen & Toubro, an Indian engineering & construction company; Beckett Rankine Partnership, a UK-based port engineering & consulting firm.

The port is expected to provide facilities to handle dry bulk, liquid bulk, and other break bulk cargo in the initial stages. The port would develop additional facilities to handle containerised cargo subsequently.

Interestingly, two coal based power projects, each of 500mw, coming up at Krishnapatnam have signed agreements with APSEB to create independent jetties to handle their coal requirements. KPCL, now plans to impress upon both the parties the benefits of using the port compared to other means.ÿ