Mumbai: Om Metals Infraprojects plans to achieve financial closure for its Pondicherry port project in the next six to eight months and complete the project in two phases, a top company official said.
“We are presently carrying out the environmental impact assessment studies which we will then submit to the Centre for its approval,” he said. After this, “We are targeting financial closure for Pondicherry port in six to eight months and aim to complete the project in two phases. Phase 1 should be completed by mid-2013,’Om Metals Infraprojects’ Director – Business Development, Vikas Kothari said.
Om Metals is also setting up a multi-product SEZ alongside the port in a four way joint venture with Subhash Projects and Marketing Limited (SPML), the Pondicherry Government and Urban Infrastructure Fund, over 860 acres and this is expected to be completed by end-2013.
For the port development, Om Metals has set up a SPV - Pondicherry Port Ltd - in which it holds a 50 per cent stake with SPML holding the balance.
The plan is to set up six container terminals, one general cargo berth, one liquid cargo berth and one cruise terminal, Kothari said, adding that the company would be sharing revenue of 2.5 per cent with the Pondicherry Government.
The total project cost of the port is pegged at Rs 2,785 crore and the debt-equity ratio would be around 70:30 or 80:20, Kothari said, adding that “we plan to rope in a strategic partner at an appropriate time.”
On the 860-acre SEZ, Kothari said that the project cost here was around Rs 500 crore with the debt-equity ratio pegged at 70:30.
A SPV - Pondicherry SEZ Ltd - in which Om Metals and SPML hold an 18.5 per cent stake each, the Pondicherry Government 26 per cent and Urban Infrastructure Ltd 37 per cent, has been set up, Kothari said.
The state government’s equity is in the form of land, he said.
The SEZ would be marketed as a fashion, education, biotech, IT and ITeS SEZ, he said, adding “with its well known French connection, we expect a lot of French companies to invest here.”
In FY 09, Om Metals clocked a consolidated turnover and PAT of Rs 140 crore and Rs 25 crore, respectively.