Subsidiary of GMR Infra to develop multi-cargo port in Andhra Pradesh

Kakinada SEZ Limited was declared the selected bidder by the government of Andhra Pradesh. The port will be developed through PPP model.

GMR Infrastructure's subsidiary Kakinada SEZ Limited won a closely contested bidding process in which Adani Ports and SEZ, Navayuga Engineering Company and Bothra Shipping Services also participated. Earlier, Adani Ports had emerged as the highest bidder with 1.10 per cent revenue share offer, but Kakinada SEZ Limited improved the revenue share offer to 2.70 per cent to seal the deal. The tenure of the revenue share offer is 30 years.

This commercial port will be located in East Godavari District, around 30 km away from Kakinada city. The greenfield all-weather, deepdraft, multi-cargo port will be strategic located on the Vizag-Chennai Industrial Corridor and give businesses access to the East Coast of India. The initial operational capacity of the port is expected to be 16 million tonnes.

Meanwhile, the stock of GMR infra was buzzing on the bourses on Thursday. At 10:10 hours, the stock was trading at Rs. 15.75 per share, up 1.29 per cent on BSE, when the benchmark index S&P BSE Sensex was at 35,281.24, up by 64.13 or 0.18 per cent.