New Delhi: The Competition Commission of India (CCI) has approved acquisition of Krishnapatnam Port Company Limited by Adani Ports and Special Economic Zone Limited (APSeZ). The proposed combination envisages acquisition of equity shareholding along with management control of Krishnapatnam Port Company Limited (KPCL) by Adani Ports and Special Economic Zone Limited (Adani Ports), the Ministry of Corporate Affairs stated here on Thursday.
KPCL is located in Andhra Pradesh’s Nellore district. It was formed by winning the mandate from the Government of Andhra Pradesh to develop the existing minor port into modern, deep water & high Productivity port, on BOST (Build–Operate-Share-Transfer) concession basis for 50 years. The port is being built in three phases. Post the completion of the first phase in a record time of 18 months, Krishnapatnam Port was dedicated to the nation on July 17, 2008. Currently the second phase of development is underway. The port is well on its way in becoming the largest automated port for exports and imports in South Asia and rates high on all the parameters of operations, including optimum cost, reliability, time and the best available service to customers.
In January 2020, APSeZ had moved to acquire 75% stake for a total consideration of ₹13,572 crore from the Hyderabad-based C.V.R. Group. The balance stake was to be held by the CVR Group, which, according to its official website, is a highly diversified group having a turnover of US$ 1-Billion and an order book of US$ 10-Billion comprising of power, steel, port establishment, spatial technology and applications, information technology and exports.
Adani Ports is a customer-facing integrated port infrastructure services provider currently present across ten domestic ports in six maritime states of Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha. The Acquirer manages the logistics chain (i.e. from vessels management to anchorage, pilotage, tug pulling, berthing, goods handling, internal transport, storage and handling, processing and final evacuation by road or rail).
KPCL is engaged as a developer and operator of the deep water port at Krishnapatnam, Andhra Pradesh, pursuant to the concession agreement on Build-Operate-Share-Transfer basis with Government of Andhra Pradesh for a period of thirty years from the date of commercial operations and entitled for a further period of 20 years (two periods of 10 years each).