DPL, the 12th port to join APSEZ’s string of ports across the eastern and western coast of India would establish the company’s footprint in Maharashtra. The port company had been undergoing insolvency proceedings in India’s bankruptcy court National Company Law Tribunal (NCLT) since 2018.
Adani said it will “strengthen and repair existing infrastructure and invest in development of facilities for dry, container, and liquid cargo,”
“DPL will evolve as an alternative gateway to JNPT and will invite and support the development of port-based industries on port land. The development of DPL will lead to further investments across various industries such as consumer appliances, metals, energy, petrochemicals, and chemicals business in Maharashtra and provide a tremendous fillip to the industrial development and growth in Maharashtra. These investments will contribute to employment generation and socio-economic development of the port’s hinterland,” the company said in a statement.
Adani’s takeover price means the lenders of Dighi Port will have to take a massive haircut on their dues.
Dighi Port was admitted by the Mumbai Bench of NCLT in its o by the Mumbai Bench of NCLT in its order dated March 25, 2018. Subsequently, Adani Ports, Jawaharlal Nehru Port Trust (JNPT) and a consortium of Veritas (India) Ltd and UV Asset Reconstruction Company Ltd had submitted bids to acquire Dighi Port.
The port’s promoter Vijay Kalan and his son owed over Rs 3,000 crore to a consortium of 18 lenders led by Bank of Baroda which later declared Kalantri a wilful defaulter.
Early last year, a tribunal gave its nod to
resolution plan for Dighi.
Adani is India’s largest port developer and operator with 12 ports and terminals — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai and Krishnapatnam in Andhra Pradesh — representing 24% of the country’s total port capacity.