In a major restructuring exercise, Adanis, the promoters of Mundra Port and Special Economic Zone Ltd (MPSEZ) have decided to merge their 81% equity holding with Adani Enterprises Ltd (AEL), the flagship company of Ahmedabad-based Adani group. With this, MPSEZ will become a subsidiary of AEL. However, non-promoter shareholders of MPSEZ will not get affected by the proposed merger. The decision was taken during the board meeting of AEL held here on Friday. AEL also announced bonus shares in the ratio of 1:1 to its shareholders. In the past, the company had issued bonus twice—in 1996 and 1999.

The restructuring exercise would bring all group businesses under one flagship entity AEL. “The board has empowered a special committee to evaluate the proposal on the basis of requisite legal and financial advice,” said Gautam Adani, chairman of Adani group, which has interests in businesses like coal trading and mining, power generation and transmission, oil and gas, agriculture and port and SEZ. The group has floated MPSEZ as a separate company for development of port and SEZ, while other activities are a part of AEL.

The board has also decided to raise Rs 5,500 crore through the rights and qualified institutional placement (QIP) issue for undertaking expansion of coal mining activities and gas business, repayment of high cost debt and meeting long-term working capital requirement. Of the Rs 5,500 crore fund raising programme, the company will come out with rights issue of Rs 1,500 crore within the next three months, while remaining Rs 4,000 crore will be raised through QIP issue. It may be pointed out that the size of QIP issue has been increased from Rs 1,500 crore to Rs 4,000 crore. The special committee that has been appointed by AEL will finalising various aspects of rights issue like entitlement ratio and price.

October 31, 2009

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October 5, 2009

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Ahmedabad-based Adani group has evinced interest to set up a large port in Orissa which will eventual have a capacity to handle 100 million tonnes cargo. The scope of the project also includes port-based industries like shipbuilding and repairing unit.

The proposed venture would be an all-weather and multi-user port and the company’s preferred location for this was Barunei Muhan in Kendarapara district, official sources said.

Rajesh S Adani, managing director, Adani group met the chief minister Naveen Patnaik in the state secretariat recently and discussed with him the company’s investment proposals.

During the discussion Adani informed the chief minister that the group had been selected as the Miner Developer Operator (MDO) for the coal blocks allotted to the government of Maharastra and Gujrat in the Talcher Coalfields area.

Both the state governments proposed to set up 2500 Mw (250x10) power plant at Angul and are in the process of setting up of a coal washery.

The coal would be sent to Gujarat and Maharastra after washing and the washery reject will be utilised for generation of power.

September 28, 2009

TOPAdani to supply power to MSEDCL at Rs 2.64 per unit

Adani Power Maharashtra Ltd (APML), which is coming up with a 1320 Mw power plant at Tiroda in Gondia district, has decided to supply power from its proposed plant at Rs 2.64 per unit to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL).

The company has claimed the rate is most competitive among all other agreements so far executed by the state board with private sector power generation companies, according to Sanjay Dokey, General Manager of the Adani Group.

Adani Group has made a commitment to MSEDCL to supply 1320 Mw power for the next 25 years at the same tariff.

With this, Maharashtra grid is expected to ease the severe power crisis in state. Various clearances needed for the project including those from Ministry of Environment and Forests, Defence Aviation and Civil Aviation (for chimney) and Maharashtra Pollution Control Board (MPCB) have already been obtained, Dokey said in a release today.

South East Central Railway (SECR) has given a clearance for constructing a private siding for coal loading for the plant at Kanchewani station, close to Tiroda station.

The first unit of 660 Mw of Tiroda plant is expected to go full steam within next two years from zero date. Plant consists of 660x2 units. A significant aspect of the project is that about 7000 to 8000 persons will get direct and indirect employment.

The coal linkage for the plant has been granted by South Eastern Coalfields Ltd (SECL) and in addition, the company plans to operate its own coal mines at Lohara (West) and Lohara blocks in Chandrapur district.

These coal blocks are 11 kms away from Tadoba Andhari Tiger Reserve (TATR). The coal block alloted to Adani has 169.6 million tonnes coal reserves with 17 metres of coal seam thickness. The plan was approved by the government in May 2008, the release said.

August 28, 2009

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With two major coal fired power plants coming up in Mundra, resulting in a lot of availability of fly-ash, Adani group is in talks with leading cement makers for setting up a plant with a capacity of 5 million metric tonne per annum (mmtpa). The project will come up with an investment of about Rs 2,000 crore.

The Ahmedabad-based group is negotiating with Birla Cement and Gujarat Ambuja for the project. "It is a logical extension and a decision has been taken. If nothing concrete emerges out of talks for a joint venture, we will go ahead on our own to set up the cement plant," said a source close to the development.

Put together, Tata Power’s 4,000MW ultra mega power project (UMPP) and Adani Power’s 4,620MW plant in Mundra would generate 1.5 mmpta of fly-ash, which would be used for cement manufacturing. Kutch has reserves of limestone, the basic raw material needed for making cement.

Adani Power Limited has raised Rs 3,000 crore from capital markets to execute power projects worth over 9,000MW across the country.

Mundra Port & SEZ Ltd has already planned a dedicated coal terminal to service the two power projects at Mundra Port.

August 31, 2009

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