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Country's biggest port operator Adani Ports is close to acquiring Dhamra Port, an equal joint venture between Tatas and L&T, in a deal believed to be worth about Rs 5,000 crore.
Talks between Adanis and Tata Steel and Larsen & Toubro have reached a point where the signing of the deal is just a formality, sources close to the development said.
When contacted, the three companies involved in the proposed deal declined to comment.
"Adani Ports people have already started working at the Dhamra Port," a source said, adding Adanis have already taken Tata Steel on board on valuation front.
L&T is believed to be unhappy with its expected returns.
"Adanis are confident of resolving the valuation issue with L&T. The final deal may be signed in a couple of months from now," he added.
Dhamra Port Company, which operates the port, has been awarded a concession by Odisha government to build and operate a port on Dhamra river in Bhadrak district on BOOST (Build, Own, Operate, Share and Transfer) basis for a total period of 34 years, including a period of 4 years for construction.
Another source said as per the Tata Steel and Adani Ports deal, Dhamra port could be valued at Rs 5,000 crore. Going by the location and future plan, which is subject to certain clearances, Dhamra port offers a huge potential.
The location of Dhamra in close proximity to mineral belt of Orissa, Jharkhand and West Bengal. It is poised to become the biggest and most efficient Port in the East Coast of India, Dhamra Port company says in its website.
Larsen & Toubro was the first to announce, among the two promoters, to exit from the port as it is "a non-core asset". Tata Steel, however, earlier ruled out any immediate exit.
Adanis are eyeing Dhamra Port as it will help Adani Ports and SEZ to expand its presence on the east coast. Dhamra Port also has the deepest draft which is suitable for large vessels making it the most cost-effective port on the eastern coast.
Adani Ports is country's largest port operator with its flagship Mundra Port in Gujarat being the largest commercial port in India. The company has presence at six ports in India, five being at the west coast. Adanis only port on the east coast is the Vizag port having seven mtpa capacity.
Built on BOOST basis, Dhamra Port Company has a concession period of 34 years, years, including 4 years for construction. Options are there for enhancing the concession period for two additional periods of 10 years each. The first phase construction, at an investment of Rs 3,200 crore, commenced in March, 2007 and it began commercial operations in May, 2011.
Though it operates two berths with an annual capacity of 25 million tonnes of cargo now; the master plan of the Port envisages 15 berths, capable of handling more than 100 million tonnes of dry bulk, liquid bulk, break bulk, containerised and general cargo.
