A consortium of banks led by Bank of India would reportedly lend Rs 700 crore for the infrastructure project proposed to be carried out by Vijay Kalantri-promoted Dighi Port.

The project, which is estimated to cost Rs 1,000 crore, includes setting up a new berth and road and rail infrastructure at the port. The remaining cost would be met by the promoters, reports indicate.

It is learnt that the proposed projects would enable the firm to address connectivity, which has been a great weakness for the port. It is learnt that the promoters have invested so far Rs 2,600 crore for developing the port and the necessary infrastructure. Presently, the port is said to have two berths.

Reports indicate that the port has enough land to develop 15 to 20 berths but the government has only given permission to develop five in the first phase.

The port plans to capture some cargo traffic from Mumbai Port and Jawaharlal Nehru Port Trust, which are facing capacity constraints. Dighi is also looking to set up container terminals at the port by 2014.