Adani Ports & Special Economic Zone (APSEZ) has inked a definitive agreement with L&T Infrastructure Development Projects and Tata Steel to acquire 100 per cent stake in Dhamra Port Company.

Dhamra Port Company, which is developing Dhamra Port project, is a 50:50 JV of Tata and L&T. The acquisition will be valued at Rs 5,500 crore. As per the agreement, the transaction is subject to customary conditions precedent including lenders / third party approvals.

Dhamra Port project, located at Bhadrak district in Odisha, is a deep draft port. It has two fully mechanized existing berths, 63 km of a private rail line connecting the Bhadrak station to the main trunk line, and has already received environmental clearance for development of 12 additional berths.

Pursuant to the acquisition, Phase-II of the Dhamra Port expansion plan, estimated to cost Rs 10,000 crore, will commence within 90 days, with  completion expected within 30 months. This continued expansion will allow the Dhamra port to exceed 100 million tonne of cargo capacity by the year 2020.

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