Essar Ports has slashed interest rate by around 2.5 per cent on the Rs 405-crore debt that it had taken for building the 30-million tonne capacity Essar Bulk Terminal at Hazira in Gujarat by refinancing the debt.

The ports company refinanced the debt by using take-out finance scheme of India Infrastructure Finance Co. Ltd. (IIFCL).

Government's take-out finance scheme allows firms to slash their interest payment on the completion and commissioning of an infrastructure project. In addition, the scheme helps firms in reducing the interest payment on refinancing of a debt.

The company said that it was further exploring the scheme to slash its interest payments on debt for its other projects.

A statement issued by the company states, "Essar Ports could further explore availing the benefits of such scheme for cutting costs of its infrastructure project - Vadinar Port terminal."

Earlier, in May this year, the company hit an agreement with Port of Antwerp to sell nearly 4 per cent stake in the company for around Rs 175 crore. The proceeds from the sale were used to slash the company's debt. The port is now in anticipation of security clearance from the home ministry after it proposed to develop a gigantic container at the Chennai Port.

Ruia family-promoted Essar Ports currently has a total debt of around Rs 4,500 crore.