5 days ago
- Business
- Business Standard
JSW Infra gains on securing LoA for berth reconstruction at Kolkata Port
JSW Infrastructure added 1.43% to Rs 309.55 after the company has received a letter of award (LoA) from the Syama Prasad Mookerjee Port Authority for the reconstruction of berth 8 and mechanization of berths 7 and 8 at Netaji Subhas Dock, Kolkata.
The project, awarded on a design, build, finance, operate, and transfer (DBFOT) basis under the PPP model, is aimed at enhancing container handling capacity at the port.
The project comes with a 30 year concession period and aligns with JSW Infrastructures strategy to expand its terminal portfolio under the Governments port privatization initiative. With an estimated capex of Rs 740 crore and a construction timeline of two years, the company will also be able to commence operations during the construction phase, leveraging Kolkata Citys steady cargo volumes. Post completion, the project is expected to significantly enhance both capacity and operational efficiency.
The development marks a key milestone in JSW Infrastructures strategy to diversify its cargo portfolio through targeted investments in the container segment.
With this addition, the company strengthens its container operations across both eastern and western coasts. On the west coast, JSW Infrastructure operates the New Mangalore Container Terminal with a current capacity of 0.2 million TEUs which is being expanded to 0.35 million TEUs. The Kolkata project brings the companys total container handling capacity close to 1 million TEUs, positioning it as an emerging player in Indias port container sector.
The company has clarified that neither the promoter, the promoter group, nor any group companies have any interest in the entity to which the contract/order has been awarded.
Furthermore, the transaction does not qualify as a related party transaction under applicable regulations, and hence the question of it being conducted at arms length does not arise.
JSW Infrastructure, a part of JSW Group, is the second largest commercial port operator in India in terms of cargo handling capacity. It develops and operates ports and port terminals pursuant to port concessions.
The companys consolidated net profit jumped 56.67% to Rs 515.58 crore on a 17.04% increase in revenue from operations to Rs 1,283.18 crore in Q4 FY25 over Q4 FY24.
