India’s port developer and operator Adani Ports and Special Economic Zone Ltd (APSEZ) has received a nod from the government of Tamil Nadu on its plans to purchase the Kattupalli port in Chennai, India’s newspaper LiveMint writes quoting unnamed government sources.
The approval comes on the back of a Memorandum of Understanding (MoU) signed with the operator of the port, Larsen & Toubro Shipbuilding Limited (LTSB), in October 2015.
Kattupalli port was awarded to LTSB, as part of a shipyard complex, in 2008 for development and operation during a period of 30 years, therefore the sale process was subject to approval from the Tamil Nadu government and the Central government.
The port would now be de-merged from the shipyard, which would continue to be managed and operated by LTSB.
The original terms of the agreement signed between the government and LTSB would not be changed. Under the deal, signed in 2008, LTSB said it would continue to pay the state either the revenue share or a royalty per standard container handled at the terminal, whichever was higher, for the set period of time.
World Maritime News contacted APSEZ and Larsen & Toubro for confirmation and details on the approval, however, the companies have not yet replied.
APSEZ has not officially announced the approval for the purchase, nor has it revealed any information on the stock exchanges yet.
The price that will be paid for the Kattupalli port has not been disclosed.
The acquisition of the Kattupalli port is part of Adani Group’s intention to increase its footprint on India’s east coast. Kattupalli International Container Terminal (KICT) was being developed by LTSB within a project that includes an integrated shipyard cum port with an initial annual capacity of 1.2 million TEUs at Kattupalli.
World Maritime News Staff