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Adani Aiming To Capture Vizag Steel?

Adani Aiming To Capture Vizag Steel?

Even as the workers of Visakhapatnam Steel Plant have intensified their agitation against its privatisation by the Centre, speculations are rife that industrial giant Adani Group is eyeing taking over of the steel plant.

Last week, a delegation from Adani group reportedly visited the Visakhapatnam Steel Plant and held discussions with the management. Apparently, the delegation came to Vizag after coming to an agreement with the Union steel ministry.

Lending credence to these speculations, the Adani group on Tuesday announced that its flagship company - the Adani Ports and Special Economic Zone (APSEZ) Ltd, which India’s largest private Ports & Logistics company, is acquiring majority stake in Gangavaram Port Limited.

The Gangavaram Port was built essentially to help Vizag Steel Plant to import the raw material like coking coal and iron ore, apart from other commercial activity.

It is located next to Vizag Port and is the second largest nonmajor port in Andhra Pradesh with a 64 MMT capacity established under concession from Government of Andhra Pradesh (GoAP) that extends till 2059.

The major stake holder in the port is D V S Raju and family, which was owning 58.1 per cent share. Now, the Raju family sold the entire stakes to Adani group for Rs 3,604 crore. 

The Adani ports SEZ had already announced acquisition of Warburg Pincus’s 31.5% stake in the Gangavaram Port on March 3, 2021 and together with this acquisition, APSEZ would have 89.6% stake in GPL. 

Gangavaram port also has free hold land of about 1,800 acres, which was acquired from Visakhapatnam Steel Plant.

“After acquiring the port, the Adani group is eyeing on Vizag Steel and its remaining land holding of another 7,000 acres,” sources said.

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