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Hindustan Infralog Pvt Ltd, the Indian subsidiary of DP World, a global port operator owned by the Dubai government, has signed a concession agreement with the Deendayal Port Authority for a significant venture at Tuna-Tekra. Securing the bid with the highest royalty offer of Rs6,500 per TEU, the project boasts a concession term of 30 years, featuring a yearly escalation of 2% in royalty, extendable for an additional 20 years.

This project at Tuna-Tekra stands as the largest investment under the private-public partnership (PPP) model for major ports. To facilitate its realization, it has secured a substantial loan amounting to Rs3,500 crore from the National Bank for Financing Infrastructure and Development (NaBFID) and Axis Bank Ltd. This financial infusion is earmarked for the construction of a terminal with a capacity of 2.19 million twenty-foot equivalent units (TEUs) within the Deendayal Port premises in Gujarat, with a projected cost of Rs 4,243.64 crore.

Both the National Bank for Financing Infrastructure and Development and Axis Bank have committed to extending a term loan facility of Rs1,750 crores each to the project. Additionally, Axis Bank has granted Rs140 crore as a guarantee facility and Rs150 crores as a hedge facility, contributing to DP World’s attainment of financial closure for the project.

Notably, this marks the maiden loan sanctioned by NaBFID, backed by the union government, to the port sector since its inception in 2022. Recent developments include DP World’s submission of a performance bank guarantee worth Rs127 crores to the Deendayal Port Authority and the establishment of an escrow account, as stipulated in the concession agreement, signaling progress toward meeting all prerequisites for the project.

With Hindustan Infralog poised to fulfill all conditions precedent, the stage is set for the seamless implementation of the container handling facility, underscoring a significant stride in India’s port infrastructure development.