India’s Jawaharlal Nehru Port Trust (JNPT) has secured approval from the National Company Law Tribunal (NCLT) to acquire the beleaguered Dighi Port for Rs8.53bn ($122.3m).
Dighi Port is the first Greenfield port in the Indian state of Maharashtra and is being developed as a multipurpose, multi-cargo, all-weather port with deep draught, direct berthing facilities and modern cargo handling equipment.
Balaji Infra Projects (BIPL) is developing the port as part of a 50-year build, own, operate, share, transfer (BOOST) concession agreement that was signed with the Maharashtra Maritime Board (MMB) and the Government of Maharashtra.
The port is ideally located within a natural harbour and features an exclusive channel that offers a depth of 14.5m.
Earlier this month, the Mumbai Bench of the NCLT accepted the resolution plan submitted by JNPT for Dighi Port.
JNPT had to delay due to a strong challenge from Adani Ports and Special Economic Zone (APSEZ) to win the deal. APSEZ had offered Rs1 crore more than JNPT in its resolution plan.
Around 99.38% of the Committee of Creditors led by the Bank of India rejected Adani Group’s resolution plan after it was put to vote.
Under the resolution plan, JNPT will have to pay Rs6.51bn ($93.4m) to a group of 18 financial creditors. The government-owned port operator will invest a further Rs1.9bn ($27.37m) as equity to improve the operations of Dighi port besides paying Rs114m ($1.64m) to Maharashtra Maritime Board.
JNPT said that its resolution plan provides more than 85% of the average liquidation value of Rs3.56bn ($51.1m).
JNPT will fund the resolution plan from its internal resources and shareholders’ funds.