INDIA: UltraTech, Binani likely to set up units at Dighi Port

Following Jaypee Cement’s plans to set up a 3 million tonne cement grinding plant in the port area of the upcoming Dighi Port in Raigad district of Maharashtra, Aditya Birla Group company UltraTech and Binani Cement are in talks with port developers to set up grinding and packaging plants there, sources close to the development said. The Dighi Port, promoted by Balaji Infra Projects as a joint venture with Maharashtra Maritime Board under private-public-partnership (PPP), expects to commission its first phase by March 2011. IL&FS is a co-developer to the project and holds 20% equity in Dighi Port.

While UltraTech is expected to sign a memorandum of understanding (MoU) to this effect soon, negotiations between Dighi Port and Binani Cement are still on. While Jaypee had taken up 40 acres on a 30-year lease from Dighi Port, UltraTech will set up the plant in 50 acres of land, sources...added. An email query sent to UltraTech remained unanswered, while a spokesperson from Binani could not be reached for comments.

According to Vijay Kalantri, chairman & MD, Dighi Port, a total of Rs 1,200 crore has been invested in the first phase of the port development. “For the first phase, the port has already tied-up 12-13 million tonne of cargo through various MoUs with companies,” he said. The total development of the port will attract an investment of about Rs 2,500 crore, which will be invested by 2012. The port will be fully operational with five berths and a capacity to handle 25-30 million tonnes of cargo by then.

With the proposed cement plants coming up on Dighi Port land, the all-weather port is securing captive coastal cargo, with these companies contributing about 2-3 million tonnes of cargo. The companies will acquire land from Dighi Port on a long lease of 30 years. The port has a total land of about 1,000 acres, which is sufficient be given to these cement companies for setting up their plants and also for developing Dighi's special economic zone (SEZ) and free trade warehousing zone (FTWZ), expected to be ready by the year 2012.

Even though the berths are still under construction, it is exporting bauxite from an 80 metre temporary berth. The port is part of the upcoming Delhi-Mumbai Industrial Corridor (DMIC) and Dedicated Freight Corridor (DFC) which will ensure constant flow of cargo. Kalantri is also optimistic about the upcoming thermal power projects in Gujarat and Maharashtra that will ensure huge coal movement.