The loss-making Mormugao Port is to get fiscal aid of Rs 200 crore from the Jawaharlal Nehru Port Trust (JNPT). Mormugao Port will have to pay 10 per cent interest to JNPT on the loan. JNPT has cash reserves of over Rs 3,500 crore.
JNPT has deposited much of its reserves in a bank and around Rs 1,900 crore has been set aside for dredging the 30-km-long channel between Mumbai and JNPT. Recently the government has asked the JNPT to financially support the Mormugao Port, its neighbouring port, which is in a financial crisis.
Besides JNPT, New Mangalore Port Trust too has extended a loan of Rs 100 crore to Mormugao port to tide over its current crisis.