Tata Steel buys 51% in Odisha port project

30 January 2017

Tata Steel has agreed to acquire a 51% stake in an upcoming port project in Odisha for Rs 120 crore. According to the company, its exact cost of acquisition will depend on the total cost of the project. Currently, the acquisition cost is estimated to be about Rs 120 crore. Tata Steel, directly or through any of its subsidiaries, intend to acquire the shares of Subarnarekha port project from existing promoters — Ramani Ramaswamy and Ramaswamy Rangarajan, it said in a statement.

The stake-purchase, subject to the fulfillment of certain conditions, would be completed within six months. Tata Steel said that the two entrepreneurs, through Creative Port Development (CPD), had entered into a ‘concession’ agreement with the Odisha government in January 2008 to develop the Subarnarekha port in Balasore district. CPD has not yet commenced operations. The proposed stake-purchase will give Tata Steel a representation on the board of CPD, and the right to buy the remaining stake in the future.

With the proposed acquisition in CPD, Tata Steel intends to secure competitive logistics solution for its operations in Kalinganagar, Odisha. The announcement comes three years after Tata Steel sold its interests in Dhamra port, Odisha to Adani Group.

Source – TOI