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Adanis to focus more on coastal movement of coal

Vizhinjam International Deepwater Seaport project’s groundbreaking ceremony today

Adani Ports and SEZ will focus more on coastal movement of coal in line with the Centre’s directive to Coal India to produce more of the fuel internally.

With internal production increasing, more focus will be given to coastal movement of coal, according to Karan Adani, Executive Director of the company.

Adani was here on the eve of the groundbreaking ceremony of the Vizhinjam International Deepwater Multipurpose Seaport project, of which Adani Vizhinjam Port is the concessionaire.

Big opportunity

Right now, 14-15 million tonnes of coal are moving through the coast between Tamil Nadu and Andhra Pradesh.

If Coal India were to raise production, the volume is bound to go up, Karan Adani said.

“And that’s the advantage we have. Having ports on both sides of the peninsula, you can catch coal for instance at Dhamra and ship it to Goa, Vizag, Mundhra or Dahej.

“That’s a big opportunity for us even if imports were to come down,” Adani told newspersons.

“As a group, we’re taking a conscious decision to de-risk our hedge from coal. We’re focusing more on containers because, In India, we see a shift in business to containers.”

Another thing that the Adanis are working on is to shift to other sources of energy. Gas is meant to be another big source. LNG and LPG terminals are other areas of interest.

LNG, LPG strategy

Answering another question, Karan Adani said the company is open to acquisitions in both the LNG and LPG space.

“If (an opportunity) comes, yes. Right now, there is nothing on our table.”

As for the proposed Vizhinjam project, a part of the debt component needs to be worked out. “We’re at it, and are detailing out the project cost.

“For the time being, we have started with internal accruals to start with construction. We did not have to wait for a full financial closure here.”

The commitment of Adani Vizhinjam Port is to complete the project in 1,000 days.

The company will stick by it, according to Santosh Kumar Mohapatra, Director.

Adani Ports and SEZ owns nine port facilities on either side of the peninsula. The ‘missing pieces’ in the chain are Maharashtra, Karnataka and Andhra Pradesh, Karan Adani said.

“We would like to be in these States as well,” he added.

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