Dhamra Port, a joint venture of Tata Steel and Larsen & Toubro, registered a net loss of INR 458 crore in FY 12, the first year of their operations. L&T stated: “As this was the first year of operations for the port, it had high amortization and interests cost along with initial ramp-up in traffic”. Dhamra Port, deep water all weather port, was set up by the two corporate leaders on Build-Own-Operate-Share-Transfer model with concession from the Odisha Government for a span of 34 years with an option for renewal.The port is one of the deepest ports of India having a depth of 18 meters which enables it to handle super cape-size vessels upto 180,000 Deadweight Tonnage (DWT).Tata Steel in its annual report has remarked: “ The promoters’ combined investments in Dhamra Port Company representing 51% of the port’s paid-up equity share are pledged with IDBI Trusteeship Services, an institution jointly promoted by IDBI, Life Insurance Corporation of India and GIC of India. It is a common corporate convention and a proven strategy to pledge their security with financial institutions to raise funds to tide over a difficult situation generally of a temporary nature. Dhamra port has rich business prospects in terms of export and import, it is said.
Sunday, 26 August 2012
Tata Steel, Larsen & Toubro pledge 51% of their stake in Dhamra Port
Dhamra Port, a joint venture of Tata Steel and Larsen & Toubro, registered a net loss of INR 458 crore in FY 12, the first year of their operations. L&T stated: “As this was the first year of operations for the port, it had high amortization and interests cost along with initial ramp-up in traffic”. Dhamra Port, deep water all weather port, was set up by the two corporate leaders on Build-Own-Operate-Share-Transfer model with concession from the Odisha Government for a span of 34 years with an option for renewal.The port is one of the deepest ports of India having a depth of 18 meters which enables it to handle super cape-size vessels upto 180,000 Deadweight Tonnage (DWT).Tata Steel in its annual report has remarked: “ The promoters’ combined investments in Dhamra Port Company representing 51% of the port’s paid-up equity share are pledged with IDBI Trusteeship Services, an institution jointly promoted by IDBI, Life Insurance Corporation of India and GIC of India. It is a common corporate convention and a proven strategy to pledge their security with financial institutions to raise funds to tide over a difficult situation generally of a temporary nature. Dhamra port has rich business prospects in terms of export and import, it is said.
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