Maersk Sealand, a part of Danish shipping major A P Moller group, along with some other investors, has decided to invest close to Rs 1,000 crore (Rs 10 billion) in Gujarat Pipavav Port Ltd.
The money would be used to develop the port into a full-fledged container terminal, Gujarat chief secretary P K Laheri told Business Standard on Friday.
So far, the port has been handling only multi-purpose bulk cargo. Bulk-handling will continue, but through a separate berth.
Sources in Gujarat Pipavav said the company's board had decided to go ahead with the investments, to be made over the next two years. The money will be brought in as a mix of equity and debt.
Maersk has decided to increase its shareholding in Gujarat Pipavav from 12 per cent to at least 26 per cent. The port would now be controlled by Maersk, the sources added.
The Nikhil Gandhi-promoted Sea King Infrastructure of Singapore, which was the biggest investor so far, is taking a backseat.
A senior executive at Sea King said, "All I can tell you is that Maersk will be managing the show from now on. It will be driving the project." He declined to give more details.
The remaining equity was distributed among several investors, including Port of Singapore Authority Corporation, CDC, New York Life, AMP of Australia, the Industrial Development Bank of India and the Unit Trust of India, the sources said.
The paid-up equity capital of Gujarat Pipavav Port is Rs 165 crore (Rs 1.65 billion). The company has invested close to Rs 550 crore (Rs 5.50 billion) so far, through a mix of equity, debt and reserves.
Gujarat Pipavav, India's first private port company, was set up in 1992 to develop a deepwater, all-weather, direct berthing port at Pipavav.
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