Adani Ports, Vedanta bid for Karaikal port

3 Oct 2022 , 10:10 AM

According to news reports, Adani Ports and Special Economic Zone and a Vedanta group firm filed legally binding cash bids for Karaikal Port on September 30 at the closing of the bidding window. Five parties made expressions of interest in the 600-acre port in August, including the two firms.

Rs2,960 crore worth of debts were not repaid by Karaikal Port. On April 29, the National Company Law Tribunal (NCLT)’s Chennai bench accepted it for insolvency proceedings. JSW Infra, Jindal Power, and a group made up of RKG Fund and Sagacious Capital were the other three.

At a meeting of the committee of creditors on Monday, the two final offers will be revealed.

In the union territory of Puducherry is Karaikal Port.

A public-private collaboration between the government of Puducherry and MARG, an infrastructure developer with its headquarters in Chennai and supported by former merchant banker GRK Reddy, resulted in the development of the all-weather deep water port Karaikal Port. To develop the port, MARG Limited had established a special purpose vehicle. 2009 saw the port’s opening.

It has handled a variety of cargo, including liquid cargo, containers, project cargo, agro commodities, coal, sugar, cement, and fertilizers. A loan of Rs1,362 crore was initially approved for Karaikal Port by a group of eleven lenders, all of whom are public sector banks or financial organizations. As interest and penalties continued to accumulate due to the irregular repayment schedule, the loan grew until it reached its current size.

In 2015, loans from nine of the eleven lenders were sold to Edelweiss Asset Reconstruction Company. Corporation Bank and State Bank of Hyderabad were the only two institutions that did not sell their debts.

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