Sale Gangavaram Port to Adani Group challenged in AP HIgh Court

Visakhapatnam The decision of the Andhra Pradesh Government to sale its 10.40 stake in Gangavaram Port Limited (GPL) to Adani Ports and Special Economic Zone (APSEZ) to complete 100 per cent acquisition of the port developed in Visakhapatnam under PPP mode has been challenged in the AP High Court.

After hearing a PIL filed by Dr. Satya Bhoopal Reddy and Bontha Prakash Reddy of Prakasam district that the decision has been taken by the government without any transparency and against larger public interest, a division bench consisting of Justice A.K. Goswami and Justice N, Jayasurya posted the case to September 20.

Welcoming the development, Gangavaram Port Employees' Union honorary president Dr. B. Ganga Rao told Bizz Buzz on Saturday that they will also file an implead petition. Alleging that the sale of Gangavaram Port to Adani Group was a big conspiracy hatched by the BJP-led NDA Government, he said Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant will suffer a lot if the port goes to Adani hands.

He said the Gangavaram Port after Adani takeover has already increased the handling charge of limestone by Rs.65 a tonne entailling a burden of Rs.100 crore on RINL. In the coming days, they may increase the handling charges for coal, he said.

The petitioners who filed the PIL decried the decision not to put the recommendation of the Empowered Committee of Secretaries headed by senior IAS officer Neerabh Kumar Prasad in public domain. The committee was set up to consider the sale of 10.40 per cent stake given to the government in lieu of 1800 acres allotted to the port management at that time for the development of the port on the backyard of Visakhapatnam Steel Plant. The Cabinet has cleared the proposal to sell the government equity for Rs.644.78 crore.

APSEZ has already completed the process for buying equity from DVS Raju-led consortium, the promoter of the port and other shareholders. The Adani Group bought 58.1 per cent stake from DVS Raju-led consortium for it picked up 31.5 per cent equity of Warburg Pincus in March, 2021.

The petitioners sought a detailed probe by the Comptroller and Auditor General of India (CAG) and Lokayukta contending that a large parcel of land given for developing the port was taken away from Visakhapatnam Steel Plant to facilitate development of the port. They said the land was originally meant to build a captive jetty to meet the requirements of the public sector steel plant. Now the Centre has initiated the process for privatisation of RINL.

While advocate-general S. Sriram defended the government decision, counsel for the petitioners G. Venkateswara Rao argued that the entire sale deed lacked transparency even though the port project was developed under PPP model.