JNPT plans to raise Rs 1,500 crore through a tax free bond

JNPT plans to raise Rs 1,500 crore through a tax free bond issue this fiscal for undertaking dredging works. The money will fund the first phase of a Rs 5,500 crore dredging project to increase the draft of the Mumbai harbour's channel.

It will raise Rs 500 crore through 10 year bonds and the remaining Rs 1,000 crore through 15 year maturity bonds. JNPT is undertaking a two-phased project of dredging which will increase the draft of the channel to 17 metres from the present 11 metres.

JNPT is contemplating multiple options to fund the second phase of Rs 4,000 crore.