Visakhapatnam

No further move by Adani to take over Gangavarm port

The decision of Adani Ports & Special Economic Zone (APSEZ) to take over operations and maintenance of L&T’s shipyard and port facility at Kattupalli near Chennai has fuelled speculation that India’s leading multi-port operator lost interest in acquiring Gangavaram Port.

APSEZ, which was keen on having a strong foothold on the eastern seaboard, had acquired Dhamra Port in Odisha, close to Kolkata-Haldia ports. The Gautam Adani-owned company has plans to increase its cargo handling to 200 million tonne in next two years.

Adani Group developed a green coal terminal in the inner harbour of Visakhapatnam Port with an investment of Rs.400 crore under Build, Operate and Transfer route in 2013. It has also submitted a bid in response to expression of interest sought by the Infrastructure Corporation of Andhra Pradesh for building Bhavanapadu port in Srikakulam district.

When the speculation reached the peak on possible takeover of Gangavaram Port by Adani sometime ago, the management of Gangavaram Port had stoutly denied their intention to offload their equity. Reports in all the leading newspapers had stated that Adani was in talks with Warburg Pincus to acquire its equity.

The Gangavaram Port became commercially operational in August 2008. It was developed by Gangavaram Port Ltd, a special purpose vehicle, in which D.V.S. Raju-led consortium had 58.11 per cent stake followed by Warburg Pincus 31.50 per cent and AP Government 10.39 per cent.

GPL recently completed its expansion to double its capacity to 60 million tonne with an estimated investment of Rs.1300 crore. The port with its five all-weather berths had handled a throughput of 20.74 million tonne during 2014-15 as against the previous year’s 15.81 million tonne.

Originally, Gangavaram Port was planned to be developed as captive jetty of Visakhapatnam Steel Plant. However, the State government had exerted pressure on the steel plant to alienate its land so as to facilitate construction a Greenfield port under BOT basis.

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Printable version | Apr 21, 2021 11:23:55 PM | https://www.thehindu.com/news/cities/Visakhapatnam/no-further-move-by-adani-to-take-over-gangavarm-port/article7697230.ece

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