Major Ports May Raise Rs 50,000 Crore Loans In U.S. Dollars: Gadkari

India's 12 major ports as well as some shipping entities may raise U.S. dollar-denominated loans amounting to Rs 50,000 crore at nominal interest rates to provide a fillip to infrastructure, Union Minister Nitin Gadkari said.

After the Jawaharlal Nehru Port Trust's (JNPT's) $400 million foreign denominated loan, another major Port Kamrajar (earlier Ennore) is in the process of raising $100 million, the Shipping, Road Transport and Highways Minister told PTI.

The Centre-owned major ports are raising foreign currency-denominated loans for the first time. So far, only private players have raised such loans.

"To boost ports and shipping infrastructure, there is no dearth of funds... Our 12 major ports and entities like Shipping Corporation and Dredging Corporation may take Rs 50,000 crore loan in U.S. dollars at a very low interest rate of 2 percent," Gadkari said.

Another major port, Kandla Port Trust, is also planning to soon raise $150 million through external commercial borrowing (ECB), a government official said on the condition of anonymity.

JNPT had last year signed the pact with SBI and Singapore's DBS for a $400-million loan, which prompted other players such as Shipping Corporation, Dredging Corporation and Cochin Shipyard, to tap the same route.

India has 12 major ports – Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) – which handle approximately 61 percent of the country's total cargo traffic.

Boosted by a slew of steps the major ports surpassed private players by handling a record 673.43 million tonnes of cargo in 2016-17.

Major ports under the Centre handled a record 647.43 million tonnes (MT) of cargo in 2016-17 registering an annual growth rate of 6.79 percent against 4.32 percent in 2015-16.