On Monday Competition Commission of India (CCI) a fair trade regulator in India has permitted the acquisition of over 10 percent stake in Gangavaram Port Ltd by Adani Ports and Special Economic Zone Ltd.
The government of Andhra Pradesh will get 10.4 percent of equity shareholding, as per the notice filed by the regulator. In six states Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu, and Odisha the Adani Ports and Special Economic Zone is could be seen across 11 domestic ports.
The notice by CCI said that the Gangavaram Port has taken part to own develop and operate the deep-water port at Gangavaram, Andhra Pradesh, under an adjustment agreement on the build-own-operate-transfer basis with the state government. The regulator wrote in a tweet, “Commission approves proposed acquisition of 10.40% equity shareholding of Gangavaram Port by Adani Ports and Special Economic Zones Ltd.”
Gangavaram Port is the second-largest non-major port located in Visakhapatnam, Andhra Pradesh. It was inaugurated in July 2009 and has a depth of 21m. Mr. DVS Raju chairman and managing director of the Gangavaram Port invested Rs. 18.50 billion in the development of the port and has also taken a loan of Rs. 11.70 billion from 13 banks which also includes SBI. On 3 March 2021, it was announced by the Adani Ports, that it had acquired a 31.5% stake in Gangavaram Port from Windy Lakeside Investment, an affiliate of Warburg Pincus, for ₹1,954 crores. During 2014-2015 the Gangavaram port handled 20.74 million tonnes of cargo.