UAE-India ties grow as DP World secures $422M for Gujarat container terminal
Intiatives like the India-Middle East-Europe Economic Corridor have seen business deals flourishing between India and the United Arab Emirates.
Dubai-based port operator DP World has reportedly secured a 35 billion-rupee ($422.23 million) loan from two Indian funders to build a mega container terminal in Gujarat, a province in the west of the country. The deal marks the latest step in India's evolving economic relationship with the United Arab Emirates.
DP World is building a large-capacity terminal at an estimated cost of around 42.22 billion rupees ($510 million) at Tuna Tekra in Deendayal Port in Gujarat, the Economic Times reported, citing multiple sources.
The National Bank for Financing Infrastructure and Development, the Indian government-backed infrastructure bank and Mumbai-headquartered Axis Bank will provide the loan, the first by the bank to the port sector since the government-backed institution was established in 2022, the Economic Times reported.
“DP World has received confirmation from NaBFID and Axis Bank to fund the project,” an official with the Ministry of Ports, Shipping and Waterways, which controls the Deendayal Port Authority, told the Indian business outlet. “DP World will be signing the loan agreement with the banks soon,” he said.
