Lanco gets LoI from Kerala Govt for Vizhinjam port project

New Delhi, Sep 30 (UNI) Lanco Infratech Ltd today said its consortium with Malaysia's Pembinan Redzai Sdn Bhd has received Letter of Intent (LoI) from Kerala Government for the Vizhinjam International Transhipment Terminal Port Project, which involves development of international container transhipment port with an investment of about Rs 8,300 crore.

For the project, Lanco Consortium will incorporate a Special Purpose Company (SPC), in which the State Government will have 24 per cent equity stake.

The project is envisaged to be developed in four phases with an ultimate capacity of 6.5 Million TEUs (Twenty foot Equivalent Unit).

The commercial operations of the first phase, which will see an investment of Rs 2,800 crore, are expected to commence by 2012-end.

The licence agreement for the project will be signed between the Kerala Government and the SPC in next four to six weeks.

The project was awarded to the consortium after the Centre formally granted the security clearance to the Consortium earlier this month, the company said in a statement.

UNI SG AK KN2107