Adani Ports and Special Economic Zones (APSEZ) together with Vedanta group entities jointly submitted a financial bid for Karaikal Port on Friday, September 30, Economic Age reported.
A total of five players, including joint bidders, submitted expressions of interest for the 600-acre port located in the union territory of Puducherry in August. JSW Infra, Jindal Power and a consortium of RKG Fund and Sagacious Capital are the other bidders.
Karaikal Port defaulted on a loan of Rs 2,960 crore and was taken up for insolvency proceedings in April this year by the Chennai court of the National Company Law Tribunal (NCLT).
The final two bids will be opened at a meeting of the creditors’ committee today.
Commissioned in 2009, Karaikal Port is an all-weather water port developed in a build, operate and transfer format in a public-private partnership (PPP) arrangement between the government and MARG.
The port has handled various cargo such as coal, sugar, cement, fertilizer, project cargo, agricultural commodities, liquid cargo and containers.
The port has received a loan of Rs 1,362 crore by a group of eleven banks or public sector financial institutions. However, interest and penalties due to late or irregular payments piled up over time and nine out of eleven lenders sold their loans to Edelweiss Asset Reconstruction Company in 2015. The only two that did not sell their loans were State Bank of Hyderabad and Corporation Bank.