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Adani Port Secures Rs 45,000 Crore Expansion for Mundra

Adani Ports & Special Economic Zone Ltd Receives Clearance to Double Mundra Port Capacity with Rs 45,000 Crore Investment

Adani Ports & Special Economic Zone Ltd (APSEZ) has secured environmental and coastal regulation zone clearances from the Central Government to significantly expand the capacity of the Mundra port. This development, reported by the Economic Times, involves an investment of Rs 45,000 crore.

Expansion Details

With these approvals, APSEZ can almost double the port’s capacity to 514 million tonnes. This expansion is expected to strengthen APSEZ’s bargaining position in negotiating an extension of the concession period for Mundra port with the Gujarat government. The current concession is due to expire in 2031 after a 30-year term.

Approval Process

APSEZ had 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, bringing it to a total of 514 million tonnes. The proposed expansion will cover 3,335 hectares and is designed to handle multi-purpose, liquid, gas, and cryogenic cargo. The EAC has recommended the expansion, and final approval from the ministry is anticipated as a formality.

Current Capabilities and Future Projections

Located in Gujarat’s Kutch district, Mundra port currently has the capacity and environmental approvals to handle 225 million tonnes of cargo annually, including 9.5 million twenty-foot equivalent units (TEUs). As India’s largest commercial port and the leading container port by volume, Mundra managed 179.6 million tonnes of cargo, including 7.4 million TEUs, in FY24. This represents over a quarter of India’s total cargo volume and more than a third of its container cargo.

APSEZ projects that Mundra will exceed 200 million tonnes of cargo handling in FY25, becoming the first port in India to achieve this milestone. Despite losing around 6 million metric tonnes (MMT) of cargo volumes due to the shutdown of Gangavaram Port in April and May 2024, Mundra port handled 35.8 MMT of cargo in May 2024, maintaining a flat year-on-year performance. Notably, Mundra set a record by handling 17.6 MMT of cargo and over 700,000 TEUs in May 2024.

Inclusion in Sensex and Financial Developments

APSEZ is also set to join the 30-share Sensex, replacing Wipro effective June 24. This marks the first inclusion of a company owned by Gautam Adani in the benchmark index.

In addition, a unit of the Adani Group managing a major Australian coal port recently secured approximately $333 million in private credit from Farallon Capital Management and King Street Capital Management.

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