August 30, 2008

Marg Construction secures Cheyur Port contract in TN

BS reported that infrastructure development company Marg Constructions has been selected by Tamil Nadu government to develop a minor port at Cheyur in Tamil Nadu.

Under the contract, Marg Constructions would invest around INR 1,000 crore and would likely fund the project through a special purpose vehicle. The port will commence operations in 48 months.

A senior official close to the development said that the new port is likely to supply coal for the Tamil Nadu Electricity Board’s 4,000 MW power plant coming up near Cheyur at a cost of INR 16,000 crore.

This will be the second port project awarded to Marg Constructions in the southern region. In 2006, the Puducherry government had selected Marg Constructions to build a port at Karaikal. The port is likely to start commercial operations in the first quarter of 2009.

An SPV called Karaikal Port Private Limited has been created by Marg Constructions to set up the project. The SPV has invested INR 416 crore in Phase I of the project, of which INR 302 crore has been raised in debt funding. At the end of Phase I, the port will be capable of handling 4 million tonnes of cargo annually.