Gujarat Pipavav Port will invest Rs200-crore on infrastructure

Gujarat Pipavav Port Ltd (GPPL) is looking to invest nearly Rs200-crore out of its proposed IPO to raise Rs500-crore on further development of infrastructure at the port.

The company plans to utilise the proceeds from the IPO to repay Rs300-crore worth of debt and Rs200-crore for acquiring a crane, developing rail sidings, a container yard and building of roads at Pipavav. GPPL had till date invested Rs1,500-crore at Pipavav. APM Terminals has a 58 per cent stake in the port it runs while the rest is with the financial institutions. The port's current capacity is handling of six lakh TEUs of container cargo and 500-million tonnes of bulk cargo, but only half of this capacity is being used at present.

After failing to launch its IPO in 2008 due to the global economic recession, GPPL had filed a fresh DRHP with SEBI on December 23, 2009 and is now awaiting approval.