The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Pvt Ltd (NSFTPL) have signed a $131 million (about Rs 1,066 crore) loan agreement to upgrade the Jawaharlal Nehru Port Container Terminal in Navi Mumbai.

NSFTPL is a special-purpose vehicle jointly owned by J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.

The financing package includes $61.4 million from ADB's general capital resources and $69.6 million from the ADB-administered Leading Asia's Private Infrastructure Fund (LEAP), the Manila-based multilateral lending agency said in a statement.

"The funds will be used to upgrade existing berths and yards and to install additional energy efficient equipment such as electric quay cranes," the statement said.

ADB further said that these upgrades will expand the container handling capacity of the terminal. These will attract vessels operating on important international shipping lanes.

"Global trade and supply chains are vulnerable to shocks, and enhancing countries' trade capacity is critical to their recovery and prosperity from COVID-19," said Ashok Lavasa, ADB's Vice President for Private Sector Operations and Public-Private Partnerships.

Lavasa said the long-term financial assistance from ADB can boost economic competitiveness in India by developing world-class mega-ports and increasing the efficiency of containerized cargo terminal operations.