Saturday, 17 May 2014

Adani buys Dhamra Port from Tata Steel, L&T for Rs 5,500 cr

New Delhi :  Adani Ports has agreed to acquire Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) for about Rs 5,500 crore.

“The Dhamra port acqu
isition now gives us an opportunity to replicate the development and phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on our pan-India strategy,” Gautam Adani, Chairman of the Adani Group, said today in a statement. An equal joint venture between L&T IDPL and Tata Steel, Dhamra Port Company Ltd (DPCL) was commissioned in May 2011 with an 18-km approach channel and a dedicated 62.7 km rail link to Bhadrak. The port handled 14.3 million tonnes of cargo in the previous financial year.
DPCL, the operator, had been awarded a concession by the Odisha government to build and operate the port on Dhamra river in Bhadrak district for 34 years, including four years for construction.
The concession period may be extended by two additional terms of 10 years each. The first phase construction, at an investment of Rs 3,200 crore, started in March 2007. Following the acquisition, the second phase of development will be initiated within 90 days and completion targeted in 30 months, Adani Ports said.

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