A $131 million loan was signed between the Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) to modernise the Jawaharlal Nehru Port Container Terminal, Navi Mumbai, Maharashtra.
The loan amount will be utilised is to enhance international trade in India through efficient, transparent, and state-of-the-art logistics infrastructure.
The financing package comprises $61.4 million from ADB’s ordinary capital resources and $69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP) administered by ADB. The funds will be used to upgrade existing berths and yards and install additional energy-efficient equipment such as electric quay cranes.
According to a press release by ADB, the modernisation will expand the terminal’s container handling capacity and attract vessels operating on important international shipping lanes.
NSFTPL is a special purpose vehicle jointly owned by JM Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.
“Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region’s recovery from COVID-19 and its ongoing prosperity,” .
ADB vice-president for private sector operations and public–private partnerships Ashok Lavasa said, “Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerised cargo terminal operations.”
NSFTPL board member and JMBPL managing director Dhruv Kotak said, “We are absolutely delighted to sign the financing agreement with ADB, which is the largest loan agreement signed by us so far, and we appreciate ADB’s commitment and agility in bringing this deal to a smooth closure in record time”.