Adani picks 31% stake in Gangavaram Port

Visakhapatnam: CONTINUING its expansion-spree, Adani Ports and Special Economic Zone Ltd (APSEZ) has announced its decision to acquire 31.5 per cent in Gangavaram Port Ltd currently held by Windy Lakeside Investment Ltd (an affiliate of Welburg Pincus) for an amount of Rs 1954 crore subject to regulatory approvals.

The decision further strengthens the presence of India's largest private ports and logistics enterprise owned by business magnate Gautam Adani on the eastern coast. APSEZ has already bought 75 per cent stake in Krishnapatnam Port Co. Ltd owned by CVR Group last year for an amount of Rs 13,500 crore. Adani Group also hit the headlines for acquiring Dhamra Port in Odisha from Tata Steel and L&T for a sum of Rs 5,500 crore.

However, APSEZ, which also owns Mundra Port in Gujarat, is touted as an infrastructural marvel. It has emerged as a major economic gateway catering to the northern hinterland of the country. Before an official announcement on signing an agreement to buy 31.5 per cent equity in Gangavaram Port Ltd, owned by DVS Raju-led consortium, there was speculation for a long time that they would be acquiring the port located in close proximity to Visakhapatnam Port, a government owned major port set up in 1933.

Gangavaram Port was established under PPP basis by alienation of a large parcel of land from Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant.

Gangavaram is the second largest private port in Andhra Pradesh with a capacity to handle 64 million tonne,

Walks out of Bhavanapadu

Due to certain developments, APSEZ opted out of developing a port at Bhavanapadu in Srikakulam district of North Andhra, about 80 nautical miles north east of Visakhapatnam Port after signing a deal in 2018 to develop the port at a cost of Rs 5,000 crore. The project did not take off as the YSRCP Government insisted on revision in the draft concession agreement.