Adani Ports buys Dhamra Port of Odisha
Adani Ports and Special Economic Zone acquired the strategic Dhamra port in Odisha on the east coast of India for an enterprise value of Rs 5, 500 crore. The company inked a definitive pact to acquire the port from a 50:50 joint venture of Tata Steel and Larsen & Toubro. After the 2005 acquisition of Pipapav Port in Gujarat by APM Terminals BV from SKIL Infrastructure, the Dhamra deal is the largest port sector deal in India.
Dhamra port is one of the deepest ports on the eastern coast of India. It was granted the rights by the Odisha government in 2004 to develop and operate for 30 years. The port is considered strategic as it is located to serve the mineral belt of the eastern states and in between competitors and government-controlled Haldia and Paradip ports.
Adani Ports and SEZ:
Gautam Adani-led Adani Ports and SEZ is listed on Bombay Stock Exchange (BSE) and is 75% owned by Adani Enterprises, the flagship of Adani group. The company owns and operates 5 ports, of which three— Dahej, Hazira and Mundra—are in Gujarat. Dhamra port will help the company enhance its capacity to over 200 million tonne by 2020, making it a leader among private sector port operators in the country. Adani’s family firm also operates a coal loading terminal at Abbot Point in Queensland in Australia.
Month: Current Affairs - May, 2014