Adani completes acquisition of Krishnapatnam Port Co for Rs 12,000 crore

News Network
October 5, 2020

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New Delhi, Oct 5: Adani Ports and Special Economic Zone (APSEZ) on Monday said it has completed the acquisition of Krishnapatnam Port Company Ltd (KPCL) for an enterprise value of Rs 12,000 crore.

The company acquired a controlling stake of 75 per cent in India's second-largest private-sector port and said the acquisition will accelerate the handling of 500 million tonnes (MT) throughput by 2025.

With this acquisition, APSEZ is expecting its market share in FY21 to increase from 21 per cent to 25 per cent.

"APSEZ, India's largest port developer, operator and the logistics arm of the Adani Group, today announced the completion of the acquisition of KPCL for an enterprise value of Rs 12,000 crore. This will result in APSEZ having a controlling stake of 75 per cent in KPCL from the CVR Group and other investors," the company said in a statement.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh, a state which has the second-largest coastline in India.

The company said: "In FY21, the port is expected to generate an EBITDA of approximately Rs 1,200 crore, resulting in an acquisition EV/ EBITDA multiple of 10x".

This acquisition will accelerate APSEZ’s stride towards 500 MMT (metric million tonnes) by 2025 and is another step in implementing APSEZ's stated strategy of cargo parity between the west and east coasts of India, it added.

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, "I am happy that KPCL, the second-largest private port in India, has now become part of APSEZ portfolio. This transformational acquisition enables us to roll out world-class customer service to an increased customer base and provide pan India solution to them."

"Our experience of turning around acquisitions like Dhamra and Kattupalli ports will enable us in harnessing the potential of KPCL. We will target to enhance throughput at KPCL to 100 MMT by FY25 and double its EBIDTA by FY23," he added.

With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would be future ready to handle 500 MMT, Adani said.

"We will replicate our operations and maintenance philosophy at KPCL, continue to focus on environment, reduce emission levels and have zero tolerance for fatalities and thus improve returns to stakeholders," he said.

APSEZ, a part of globally diversified Adani Group, is the largest port developer and operator in India with a formidable presence in port infrastructure and logistics services.

APSEZ's 11 strategically located ports and terminals represent 24 per cent of the country's total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland.

The company is also developing a transhipment port at Vizhinjam, Kerala and a container Terminal at Myanmar.

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News Network
November 3,2024

Mangaluru: Deputy Chief Minister D K Shivakumar emphasized the urgent need for local job creation and a dedicated tourism policy to address communal tensions and rejuvenate the Dakshina Kannada region. 

He spoke during "Ashoka Jan-Mana," a clothing distribution event organized by Rai Estates Educational and Charitable Trust, under the leadership of MLA Ashok Rai, at Kombettu’s taluk stadium in Puttur on Saturday.

“There are challenges to communal harmony across the coastal and interior regions of Dakshina Kannada. To counter these issues, we must provide opportunities for our youth," Shivakumar stated. "The government is considering a specialized tourism policy for the coastal areas to attract more visitors and retain local talent."

Shivakumar expressed concern about a rising trend among local youth to migrate to Saudi Arabia, Mumbai, and Bengaluru due to limited job opportunities in the area. "Communal disturbances have also discouraged students from other districts from enrolling in our institutions, and several banks that originated here have closed down," he said.

Highlighting the region's potential, Shivakumar remarked, “Dakshina Kannada is home to many temples and boasts a rich coastline. Yet, despite Mangaluru having a major port, we still lack five-star hotels. Developing tourism here will be essential for creating jobs and fostering harmony.”

He also hinted at development projects proposed by Ashok Rai for Puttur, which are currently under wraps due to by-election restrictions. Assuring commitment, Shivakumar said, “Although we secured only two seats in Dakshina Kannada, we are committed to developing all constituencies in the region.”

The Deputy Chief Minister concluded with a powerful message on leadership, likening Ashok Rai to a modern embodiment of ancient virtues. “For success, one should have Dharmaraya's righteousness, Karna's generosity, Arjuna's focus, Vidura's ethics, Bhima's strength, and Krishna's strategy. Ashok Rai has all these qualities," he said, praising Rai’s dedication to the people of Dakshina Kannada.

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News Network
November 7,2024

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Mangaluru, Nov 7: In the quiet village of Tippunagar, Loretto Padavu, a heartbreaking accident claimed the life of three-year-old Aashika on Wednesday, leaving a family and community shattered.

Aashika, the beloved daughter of Unais from Pattanabailu near Farangipet, was simply enjoying a carefree moment, playing outside her grandmother’s house. It was then that an unimaginable tragedy struck: a parked goods tempo, owned by her uncle, unexpectedly rolled backward, trapping the innocent child beneath its wheels.

Despite her family’s desperate rush to get her to the hospital, little Aashika’s injuries proved too severe, and she was declared dead upon arrival. Her passing has cast a deep shadow over the close-knit community, who grieve alongside her family for the life taken too soon.

The Bantwal traffic police have registered a case and are investigating the incident, while the community mourns the loss of a precious young soul who had only just begun to experience life’s wonder.
 

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News Network
November 5,2024

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Bengaluru: In a major legal twist, an FIR has been filed against Union Minister H.D. Kumaraswamy, his son Nikhil Kumaraswamy, and their close associate Suresh Babu. The trio is accused of threatening a senior IPS officer and making false allegations against him. The FIR, registered by the Sanjaynagar police, follows a complaint by Additional Director General of Police (ADGP) M. Chandrasekhar, who heads the Special Investigation Team (SIT) under the Karnataka Lokayukta.

Allegations Against Kumaraswamy
The crux of the case revolves around ADGP Chandrasekhar's investigation into Kumaraswamy's alleged illegal approval of a mining lease to Sri Sai Venkateshwara Minerals (SSVM). Kumaraswamy, currently serving as Union Minister for Steel and Heavy Industries, has been accused of bypassing legal procedures in favor of SSVM, prompting Chandrasekhar to seek the Karnataka Governor's approval to pursue legal action.

In response, Chandrasekhar claims that Kumaraswamy lashed out publicly. On September 28 and 29, the former Karnataka Chief Minister held press conferences, accusing the officer of bribery, misuse of medical records, and personal misconduct. According to the ADGP, Kumaraswamy also issued a threat of transferring him to another cadre outside Karnataka.

Nikhil and Aide Suresh Babu Involved
Kumaraswamy’s son Nikhil Kumaraswamy is also implicated in the controversy. On September 29, Nikhil allegedly echoed his father’s accusations against Chandrasekhar. The third individual named in the FIR, Suresh Babu, a close aide to Kumaraswamy, is accused of escalating the issue by writing a letter to the Karnataka Chief Secretary. This letter, containing further allegations, was made public on social media, adding to the pressure on the senior officer.

Legal Action and Charges
Though Chandrasekhar's complaint was filed in October, formal legal proceedings began on November 4 after securing approval from the 42nd Additional Chief Metropolitan Magistrate (ACMM). The charges include Section 224 (threat of injury to a public servant) of the Bharatiya Nyaya Sanhita (BNS). A police source familiar with the case confirmed the charges.

ADGP Chandrasekhar's Response
In a strong rebuttal, ADGP Chandrasekhar addressed his team and the media, branding Kumaraswamy as an accused person trying to intimidate the SIT. He emphasized that these attacks were intended to undermine his officers' morale and interfere with the investigation.

“An accused, no matter how powerful, remains an accused. This attempt to instill fear in the minds of officers is meant to hinder justice," Chandrasekhar said in a written statement. Referring to Kumaraswamy, he added, "This accused, who is currently out on bail, has resorted to such tactics to shake our resolve."

Quoting Shaw to Drive the Point Home
In a dramatic conclusion, Chandrasekhar cited playwright George Bernard Shaw, saying, “Never wrestle with pigs. You both get dirty, and the pig likes it,” signaling his intent to remain unshaken in the face of public accusations and personal threats.

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