Thursday, March 7, 2013

Ennore Port to develop Rs 700 cr Outer Ring Road rail link in two phases


Chennai:
Ennore Port on Wednesday said that the plan to develop the rail link along the Outer Ring Road, a major transport corridor being developed by the Chennai Metropolitan Development Authority along the periphery of Chennai Metropolitan Area (CMA), would be done in two phases after getting the approval from the state government.

Addressing reporters here on Wednesday to announce the public issue of tax free secured redeemable non convertible bonds, Ennore Port Limited chairman M A Bhaskarachar said that he plans to raise Rs 1,000 crore through the bonds and some of the funds would be utilized in developing the rail link along with Tamil Nadu  government in the 22 metre strip of land owned by the state government which runs parallel to the outer ring road.

R Senthil Kumar, general manager operations, Ennore Port Trust said that the project which is estimated worth Rs 700 crore in two phases would resume soon after the clearance from the state government. “We are expecting comments from the state government this week. After the state approval, a joint venture with the state government would be formed. And then the proposal will be sent to the rail ministry for approval,” he added.

Interestingly, this comes in the wake of state government asking Ennore Port to extend the rail link up till Vandalur when the port officials discussed the Nandiambakkam-Nemilicherry rail link during a high level meeting chaired by Chief Secretary Sheela Balakrishnan on February 12. The first phase of the proposed rail link will be between Nandiambakkam and Nemilichery while the second will be between Vandalur and Nemilicherry.

Bhaskarachar also said that Ennore Port would utilize nearly Rs 400 crore raised through the bonds for dredging projects, including deepening the approach channel, port basin and berths, Rs 300 crore for procurement of 750 acres of salt land for infrastructure projects and Rs 300 crore for connectivity projects including rail and road.

He said the salt department has forwarded the proposal to acquire salt lands to Ministry of Commerce and hoped that within a period of four months the transfer order will be issued. The bonds, which are proposed to be listed on Bombay Stock Exchange, have been opened for subscription from February 28. The issue will close on March 15, 2013.

IDFC Capital Limited, A K Capital Services Limited and SBI Capital Markets Limited are the lead managers to the issue. The bonds are open for subscription by four categories of investors – qualified institutional buyers, domestic corporates, high networth individuals and retail individual investors.

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