Adani Ports and Special Economic Zone Limited said in a filing to National Stock Exchange of India (NSE) that it has entered into a non-binding Memorandum of Understanding with compatriot L&T Shipbuilding Limited (L&T) for evaluating the operations of the port at Kattupalli, Tamil Nadu.
The deal entered into effect from October 1, 2015 and is scheduled to last for a period of one month.
As informed, the definitive agreements would be entered into later.
“While all non-operating revenues and expenses will be to L&T s account. Adani shall be responsible for EBIDTA gains and losses arising from the port operation for this period,” the announcement reads.
As stipulated by the agreement, the shipyard located at the port would continue to be managed and operated by L&T.
The announcement comes on the back of reports on Adani Group’s interest in taking over the operational and management control of L&T Kattupalli International Container Terminal near Chennai as it pushes to secure a greater foothold on India’s east coast.
Kattupalli International Container Terminal (KICT) is being developed by L&T Shipbuilding Limited (LTSB) within a project that includes an integrated shipyard cum port with an initial annual capacity of 1.2 million TEUs at Kattupalli.
LTSB is a Joint Venture of Larsen & Toubro (L&T) and TIDCO. The LTSB shipbuilding facilities specialize in building commercial ships, defence ships including submarines, refitting and re-engineering of commercial and defence ships and offshore platforms.
-Source: worldmaritimenews.com