Adani Ports and Special Economic Zone Ltd (APSEZ) has acquired Dighi Port Limited (DPL) for Rs. 705 cr. ($96.7 million), as DPL becomes the 12th port to join APSEZ’s portfolio in India.
The acquisition, completed on 16 February 2021, will enable APSEZ to service customers on India’s West Coast, the largest Indian state in its contribution to national GDP.
Over Rs. 10,000 cr. ($1.37 billion) has been earmarked to develop the port into a multi-cargo facility, in addition to developing multimodal rail-road networks within the port for cargo movement. APSEZ also plans to strengthen and repair existing infrastructure and develop facilities for dry, container, and liquid cargo.
The investment from APSEZ is the latest since the acquisition of Krishnapatnam Port Company Ltd., (KPCL) for an enterprise value of Rs. 12,000 cr. ($1.7 billion) in October 2020.
CEO and Whole Time Director of APSEZ, Karan Adani, said, “The successful acquisition of DPL adds another milestone in the Adani Port’s target of creating a string of ports to increase service coverage to the entire economic hinterland of India.
“Our investment & capacity augmentation plan will be aligned with policies of the Government of Maharashtra for development of ports, associated infrastructure, industrial and socio-economic development in the state”.
The investment will seek to develop DPL into an alternate gateway into the Indian Jawaharwal Nehru Port Trust (JNPT) , serving Maharashtra, North Karnataka, West Telangana & Madhya Pradesh, and increases the economic hinterlands in the region to reach to over 90%.
As per the terms & requirements of the Resolution Plan, the transfer of concession rights has also been approved by the Maharashtra Maritime Board (‘MMB’) and APSEZ has settled the dues of financial creditors, MMB, and other admitted costs and claims.