AHMEDABAD : Adani Ports and Special Economic Zone Ltd. (APSEZ) informed exchanges on Tuesday that it received approval from the Andhra Pradesh Government for the proposed acquisition of the latter’s 10.4% stake in Gangavaram Port for Rs 644.80 crore.
“We would like to inform that the Company has received letter, order from Andhra Pradesh Maritime Board dated 23rd August, 2021 received on 24th August, 2021 intimating the approval of proposal of acquisition of 10.4% stake of GPL by the Company from Government of Andhra Pradesh,” said Adani Ports in a statement.
Adani Ports’ recent acquisition is in line with the company’s strategy of ‘east coast to west coast parity’ and will provide an access to growth from new hinterland markets as it has coverage in the resource-rich and industrial belt in eastern, central & southern India, it added.
Gangavaram Port Limited (GPL) is engaged in the business of handling various types of dry bulk and break bulk cargo. GPL is a multi-cargo facility and handled 32.81 MMT of cargo in FY 21. It has a capacity of 64 MMT. The operational revenue for financial year 2020-21 was Rs. 1,057 crores.
GPL is an all-weather, multipurpose port with water depth upto 21 meters, making it the deepest and capable of handling fully laden Super Cape size vessels of upto 200,000 DWT. Its ability to handle larger vessels efficiently has resulted in substantial savings to trade and port users. Gangavaram Port provides efficient cargo handling services for a variety of bulk and break bulk cargo groups including Coal, Iron Ore, Fertilizer, Limestone, Bauxite, Raw Sugar, Project Cargo, Alumina, Steel products etc.
The port concession was awarded to DVS Raju led consortium through an international bidding process. The Concession Agreement was signed in August 2003 and the port began operations in August 2008. DVS Raju and family hold 58.11%, Lakeside Investment Ltd holds 31.50% and the Andhra Pradesh government held 10.4% in the port.
Adani Ports and Special Economic Zone Ltd. (APSEZ) part of Gautam Adani-led conglomerate Adani Group, is a leading integrated ports and logistics company in India.