India's JSW Group plans $1.07bn new investment in port developments


India-based JSW Group is planning to make an investment of additional Rs70bn ($1.07bn) to develop its ports across the country and aboard.

The proposed investment is scheduled to be carried out over the next three years.

The company is also considering diluting up to 15% stake in JSW Infrastructure, which operates the group’s ports business, and will make an initial public offering (IPO) by 2020.

JSW Infrastructure has already invested Rs40bn ($611m) in its Jaigarh port situated in Maharashtra. The investment is expected to double the port’s current 40 metric tonnes per annum (mtpa) capacity by 2020, and 125mtpa by 2025.

JSW Group chairman Sajjan Jindal was quoted by The Telegraph as saying: “We will be investing Rs90b ($1.37bn) more in the ports sector until 2020, including the Rs20bn ($305m) already invested.”

"The investment is expected to double the port’s current 40 metric tonnes per annum (mtpa) capacity by 2020, and 125mtpa by 2025."

The company is planning to build four berths with the remaining Rs50bn ($764m) investment, which excludes the investment made in Jaigad. The berths are to be located in in Paradip, Odisha, India, and a greenfield project in Fujairah, United Arab Emirates (UAE).

The investment in Paradip will increase the port’s capacity to 50mtpa.

JSW Group is expected to have total capacity of 200mtpa in the fields of dry bulk cargo and container handling by 2020, following the completion of works facilitated by the newly announced investment.

The company has also collaborated with Hiranandani group, which is expecting to invest up to Rs40bn ($611m) to build a liquefied natural gas (LNG) terminal at the Jaigad port.