Adani signs Rs. 7,500cr offshore pact

Adani Enterprises Limited, (AEL) through its Indonesian arm PT Adani Global, has recently signed a tripartite pact involving the regional government of Sumatra Selatan and PT Bukit Asam, the Indonesian government owned coal and mining company, for setting up a dedicated rail and port project at an investment of Rs. 7,500cr.

In the project, which is expected to be completed in about 48 months, the government of Sumatra will facilitate all mandatory permits, approvals and land acquisition for building rail and port projects. The work on the project is set to start in the next three to four months and will be funded through a mix of 70 per cent debt and 30 per cent equity. The Mundra Port and SEZ Limited, MPSEZL is investing in building the port and Adani companies will take care of raising rail infrastructure investment.

The pact has given the AEL a direct access to two billion tons of coal mine reserves and the project also provides coal buying rights to the Adanis and the infrastructure created will be used for transportation of minimum volume of 35 million tons per annum of coal from PT Bukit Asam, a leading producer of coal in Indonesia and owns the second largest coal reserves in the country.