 "Adani Ports")
Adani Ports & Special Economic Zone Ltd (APSEZ) has received environmental and coastal regulation zone clearance from the Centre to double the capacity of the Mundra port at a cost of Rs 45,000 crore, the Economic Times has reported.
These approvals will allow the company to nearly double capacity to 514 million tonnes, the report claimed.
This expansion may bolster APSEZ's position when negotiating an extension of the concession period for the Mundra port with the Gujarat government. The period is set to expire in 2031 after a 30-year term.
APSEZ applied to the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest, and Climate Change to increase Mundra's capacity by 289 million tonnes to 514 million tonnes as part of an expansion plan covering 3,335 hectares.
This expansion will accommodate multi-purpose, liquid, gas, and cryogenic cargo. The EAC has recommended the expansion, and the final approval from the ministry is just a formality, the business daily claimed.
Located in Gujarat's Kutch district, the Mundra port currently has capacity and necessary environmental approvals to handle 225 million tonnes of cargo annually. This includes 9.5 million twenty-foot equivalent units (TEUs).
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Adani’s Mundra port cargo handling
As India's largest commercial port and top container port by volume, Mundra managed 179.6 million tonnes of cargo, including 7.4 million TEUs, in FY24. This accounts for over a quarter of all cargo volumes and more than a third of container cargo in India.
APSEZ has projected that Mundra will exceed 200 million tonnes in cargo handling for financial year 2025, making it the first port in India to reach the milestone.
However, due to the shutdown of Gangavaram Port, APSEZ lost around 6 million metric tonnes (MMT) of cargo volumes in April and May 2024.
In May 2024, Adani Ports handled approximately 35.8 MMT of cargo. This is nearly flat year-on-year.
However, the Mundra port achieved a significant milestone in May 2024 by handling 17.6 MMT of cargo, the highest monthly volume ever recorded at an Indian port. Additionally, the port managed over 700,000 TEUs in a single month.
APSEZ to be included in Sensex
Additionally, APSEZ is all set to replace Wipro in the 30-share Sensex, effective June 24. This will mark the first inclusion of a Gautam Adani-owned company in the benchmark index.
Earlier last week, an Adani Group unit managing a major Australian coal port secured a private credit of approximately $333 million from Farallon Capital Management and King Street Capital Management.
The loan for North Queensland Export Terminal Pty Ltd will be used to refinance existing debt.
