According to media reports, Karaikal Port (KPPL) is finding ways to overcome its huge debt. Among the plans are refinancing or restructuring of debt or terminalisation of its port infrastructure.
It is learnt that the port’s projection of a sharp growth of traffic from items like fertilisers, crude or petroleum, and containers has not materialised. This is possibly due to the slowdown in the economy.
KPPL, which is a unit of Chennai-based realty and infrastructure group MARG is exploring the option of terminalisation, under which it would carve out berths for inviting operators to run them as separate units.
This will get the firm upfront money which could be used for servicing debt, reports quoted a top official of the firm as saying.
It is worth mentioning that the bank loans of KPPL is downgraded by rating agency India Ratings from “BBB-“ to “BB”. The outlook on loans is negative. It also revised rating for working facility to “A4” from “A3”. The company has availed of loans worth Rs 1,633 crore against the planned Rs 1,884 crore.
The downgrade reflects KPPLÂ’s lower-than-expected revenue due to underperformance (more than 50 per cent on a pro-rata basis) in the projectÂ’s cargo ramp-up. Delay in commissioning of coal-based thermal power plants in the hinterland served by the port has hit performance, India Ratings said.
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