Essar Ports Infra Financing Policy
According to the Managing Director, Essar Ports, Rajiv Agarwal, the outlook for the economic conditions of the country appears "bright" for this year as the new policy for the infrastructure sector is expected to help the company to cut its debts worth Rs. 5000cr caused largely due to high financing costs. In a policy decision announced in the Budget and then by the RBI recently they relaxed norms for banks to raise long-term funds for financing infrastructure projects. The policy initiatives and the better economic environment have brightened the growth prospectus for the port sector. The company sees better days ahead as it hopes to take advantage of the long-term infrastructure financing policy announced by the government. It may be recalled that the Essar port is currently one of the largest private port operators in the country and operates three ports – Hazira, Vadinar and Paradip. The port has also chalked out a detailed expansion plans, which are on track with operations at Vizag terminal expected to start next quarter. The player, which mostly handles Essar group's captive cargo, hopes to increase the share of the third party cargo to five% next year and 30% in the next three years, he added.