File photo of Karaikal Port. Photo: Special Arrangement
The Adani group firm said on April 3 that the National Company Law Tribunal has approved the acquisition of Karaikal Port (KPPL) by Adani Ports and Special Economic Zone (APSEZ), India’s largest transport utility.
Earlier, APSEZ was declared the successful resolution applicant under the Corporate Insolvency Resolution Process (CIRP) of KPPL. The amount considered for the acquisition is ₹ 1,485 crore. According to the statement, Karaikal Port is an all-weather deepwater port on the east coast of India which was developed by the Government of Puducherry on a build, operate and transfer model under public-private partnership.
Karaikal Port was commissioned in 2009, and developed in Karaikal district of the Union Territory of Puducherry, about 300 KMS south of Chennai. According to the statement, it is the only major port between Chennai and Tuticorin, and its strategic location gives the port easy access to the industrial-rich hinterland of central Tamil Nadu.
According to APSEZ’s statement, the port receives a draft of 14 meters of water and has a land area of over 600 acres. Its existing infrastructure includes five operational berths, three railway sidings, mechanized bulk cargo handling systems including mechanized wagon-loading and truck-loading systems, two mobile harbor cranes and a large cargo storage space consisting of open yards, 10 covered warehouses and four Liquid storage included. tank. APSEZ said that with a built-in cargo handling capacity of 21.5 MMT, the port mainly handles cement, fertilizers, limestone, steel and liquids.
CPCL’s upcoming 9 MMTPA new refinery at Nagapattinam in Tamil Nadu presents an opportunity for Karaikal Port to handle additional large volumes of liquid cargo. Karan Adani, Chief Executive Officer and Whole Time Director, APSEZ said, “The acquisition of Karaikal Port is another milestone in consolidating our position as India’s largest transport utility. With the acquisition of Karaikal Port, APSEZ now Operates 14 ports.
Karan Adani said, “APSEZ will spend Rs 850 crore over time to upgrade the infrastructure to reduce logistics cost for customers. We envisage doubling the capacity of the port in the next 5 years and adding a container terminal It is a multipurpose port.”
As per the statement, in FY23, Karaikal Port handled 10 million tonnes of cargo.