Dighi Port Limited

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Dighi Port Limited (DPL) was incorporated in 2002 as a Special Purpose Vehicle (SPV) for the development, implementation, and operation and maintenance of Dighi Port. On March 17, 2002, Dighi Port Limited (DPL) signed with Maharashtra Maritime Board (MMB) the Concession Agreement (CA) to develop, design, finance, construct, operate and maintain the port at Dighi on Build, Own, Operate, Share and Transfer (BOOST) basis for a period of 50 years. As per the terms of the CA, MMB had an option to participate in equity capital up to 11% of the total equity capital of the project, in lieu of the land allocated by it to DPL. Dighi Port Limited (DPL) was owned by Balaji Infra Projects Ltd (BIPL) and Infrastructure Leasing & Financial Services Ltd (IL&FS). DPL envisaged constructing three berths as part of Phase I - a multi-purpose berth, a coal berth and a car berth. However, DPL revised the scope of the project to construct three multi-purpose berths. The berths were designed to handle vessels up to 65,000 dwt with a scope for future expansion. The total cost of the project is about Rs.1,039 crore (US239 million). The project reached financial closure in 2008 with Rs.802 crore of debt and equity of Rs.237 crore. Notwithstanding the change in the scope of the project, the company did not expect any overrun in the project cost, since the material handling equipment for all the berths would be similar.