Adani Ports, L&T Ink Pact for Kattupalli Port Operations
Adani Ports has entered into a non-binding Memorandum of Understanding with L&T Shipbuilding Limited (L&T) for evaluating the operations of the port at Kattupalli, Tamil Nadu, with effect from October 1, 2015 for a period of one month.
The development comes amid reports that Gautam Adani-led Adani group is likely to take over the operational and management control of L&T Kattupalli International Container Terminal near Chennai to strengthen its presence on the east coast.
The definitive agreements would be entered into later. While all non-operating revenues and expenses will be to L&T s account.
Adani shall be responsible for EBIDTA gains and losses arising from the Port operation for this period. The shipyard will continue to be managed and operated by L&T, it added.
L&T Shipbuilding is 97% owned by L&T with Tamil Nadu Industrial Development Corp. holding the balance.
The port also has permission from the environment ministry to handle other clean cargo, such as automobiles (cars, earth movers, trucks and buses), liquid non-hazardous cargo (edible oil, lube oil, etc) and break bulk cargo (granite, gypsum, barytes, limestone, steel, timber logs).
Adani Ports and Special Economic Zone (APSEZ) in June got Kerala government's nod for developing the Rs 4,089-crore Vizhinjam International Deepwater Seaport project.