Essar Ports, the country's second-largest private port operator, is almost doubling its iron ore handling capacity at its Visakhapatnam terminal to benefit from the growing demand for steel.
Iron ore is one of the key raw materials used in steel making.
Essar Ports, which was delisted from the stock exchanges two years ago, is expanding its dry cargo handling capacity at the east coast terminal to 23 million tonnes from 12.5 million tonnes.
The expansion, which is nearing completion, comes at an investment of Rs 830 crore. Of this, Rs 560 crore was financed through debt and the balance Rs 270 crore through equity.
Essar Ports, controlled by the Ruia brothers, took over the iron ore handling facility at the Visakhapatnam port from the central government in May 2015 on a build-operate-transfer basis for 30 years. Towards this, it had made an upfront payment of Rs 185 crore. In addition to that, Essar Ports has an agreement to pay a share of the revenue to the Visakhapatnam Port Trust.
Source: TOIPrevious Next