Adani Ports-Andhra Pradesh Deal For Bhavanapadu Port Called Off
Adani Ports and Special Economic Zone on Saturday said a deal with Andhra Pradesh to build Bhavanapadu Port could not materialise as the state had requested for changes in the draft concession agreement.
The company in January 2018 had won a contract to build a greenfield port in Andhra Pradesh.
Replying to a clarification sought by exchanges over media reports, the company said that it had only received a Letter of Intent to award the project of building Bhavanapadu Port in Andhra Pradesh. But the deal could not materialise following state government's request for changes in the pact.
The company had complied with all the documentary requirements of LoA, Adani Ports said in a filing to the BSE and added that subsequently, the Government of Andhra Pradesh had requested for certain changes in the Draft Concession Agreement.
“We had communicated our inability to agree to the proposal of GOAP for the changes in the Draft Concession Agreement in August 2018 and June 2019, as the changes were materially hampering the viability of the project,” it said.
In February 2020, Adani Ports had requested Andhra Pradesh Maritime Board to sign the Concession Agreement without any changes in the Draft Concession Agreement, it added.
The company said it had made clear that in case if GOAP is not agreeable to the same the project should be closed ‘on the basis of mutual consent of the Parties.’