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Press
Release on , July 5,2005
The
Central Government has sanctioned
the implementation of Sethusamudram Ship Channel Project,
at an approximate cost of Rs.2427 crores, of which the debt
component will be around Rs.1456 crores.
It is proposed to raise 50% of the debt component in
Indian rupee and the balance in foreign currency.
The entire domestic as well as the foreign debt to be
raised for the project will have the Government of India
guarantee.
The funds in the domestic market will be
mobilised either through term loans or by issuing bonds or in
the combination of these as
may be decided upon shortly. The Corporation is expecting funds
from the financial institutions which offer the lowest interest
rate, the required
moratorium for repayment etc.
The Corporation is working out details for timing
the receipt of funds to match
with the progress of work which will help in containing
the financing cost of the project.
As for debt in
foreign currency, the Corporation is expecting it in a
relatively stable foreign currency so that the effect of foreign
exchange fluctuation is minimal.
For this the Corporation will be approaching markets in
India as well as abroad to get the funds at the most competitive
rates.
UTI Bank
Ltd., Mumbai is appointed
as the sole arranger for raising the debt fund requirement of
the project.
Shri
N.K.Raghupathy, I.A.S.,Chairman, Tuticorin Port Trust has
informed the above in a press release issued today.
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