IL&FS gives Karaikal Port a booster shot.

The Karaikal Port celebrates its sixth birthday and a recent development has given it reason to cut the cake with some cheer. The infrastructure development company IL&FS, which is putting up a thermal power project near the port, has agreed to use the port for bringing coal.

For the slowdown-hit, loss-making Karaikal Port, this business is a godsend. The port, which belongs to the GRK Reddy-promoted Marg Ltd, could handle 5 million tonnes of coal in the coming years to feed the first two 600 MW units of IL&FS subsidiary. This could mean revenues of about Rs. 200 crore, according to MLN Acharyulu, Executive Director, Karaikal Port (P) Ltd.

Though another subsidiary of IL&FS is attempting to build a captive port for moving coal from its mines in Indonesia, the Karaikal Port is a boon for the power company too because, until its captive facility gets ready, the other options are Tuticorin or Chennai, both quite far from the plant.


HBL