Union at bay as takeover imminent

Visakhapatnam: THE Andhra Pradesh Government's decision to expedite the process for acquisition of 100 per cent stake in Gangavavaram Port Ltd (GPL) by Adani Ports Special Economic Zone (APSEZ) has kicked up a row here.

Gangavaram Port Employees' Union honorary president and corporator B Ganga Rao told Bizz Buzz that they would oppose lock stock and barrel the 'hasty' manner in which the government accorded approval to sell its stake to Adanis for a 'nominal' price.

Ganga Rao said that they were totally opposed to the death of a PPP project in such a manner. He said the land for GPL was given after acquiring it from Visakhapatnam Steel Plant by putting pressure on the public sector management.

Social activist and former IAS officer EAS Sarma in a letter to Chief Secretary AN Das stated that the decision was against public interest.

He said the port is in occupation of 2024 hectares in Pedagantyada mandal near here, which was originally a part of the land acquired for Vizag Steel.

The equity share of the State Government in GPL was determined wrongly on the basis of such a suppressed value of the land, which he had objected to at that time. "If the market value of that land were to be taken as on the date of transferring the land, the State's share in equity would have been in excess of 90 per cent. If that were to be the case, GPL in effect would be a government company," he stated.

"The government on Friday set up an Empowered Group of Secretaries led by Chief Commissioner of Land Administration Neerabh Kumar Prasad to submit a report in 60 days to finalise process to sell away its (AP's) 10.40 per stake at about Rs 645 crore to APSEZ. It had earlier cleared the proposal of APSEZ to buy equity from DVS Raju-led consortium.

The State got 10.40 per cent stake in the port developed by the consortium under a public private participation programme for alienation of land to develop the port.

The committee was set up close on the heels of the government giving its nod to Windi Lakeside Investments Ltd to sell its stake to APSEZ. DVS Raju, the main stakeholder in GPL also agreed to transfer 58.10 per cent equity to APSEZ.

With the acquisition of GPL, the country's largest private sector port operator will have strategic control over operations in the Eastern Coast. It has already acquired Krishnapatnam and Dhamra ports. It may be mentioned that the Adani Group had signed an agreement to develop a port at Bhavanapadu in Srikakulam district, but later it dropped out due to loss of interest.