ET reported that the country's biggest container port Jawaharlal Nehru Port Trust said that it would raise INR 1,500 crore through a tax free bond issue this fiscal for undertaking dredging works.

A top official said that the money will fund the first phase of a INR 5,500 crore dredging project that aims to increase the draft of the Mumbai harbour's channel.

Mr L Radhakrishnan chairman of JNPT told reporters that "We can issue infra bonds of up to INR 5,000 crore and we will be raising INR 1,500 crore before March.”

He added that it will raise INR 500 crore through 10 year bonds and the remaining INR 1,000 crore through 15 year maturity bonds.

JNPT is undertaking a two phased project of dredging which will increase the draft of the channel to 17 metres from the present 11 metres.

The first phase will be completely funded through the bond issue while the JNPT is contemplating multiple options to fund the second phase of INR 4,000 crore.

It has received five bids for the first phase, Mr Radhakrishnan said that work is expected to start by November and the JNPT is aiming to complete it in two years.

(Sourced from ET)