Adani Group's ports division is set to inject an additional $1.2 billion into a long-delayed deep-sea port project in Kerala, the state government announced on Thursday.
This investment follows a significant drop in market value for Adani Group's 10 listed companies, which saw a combined loss of up to $34 billion after Chairman Gautam Adani was indicted by US authorities last week for his alleged involvement in a bribery scheme. Adani Group has vehemently denied these allegations as unfounded.
The Vizhinjam port, located at the southern tip of India, is of strategic importance due to its close proximity to major international shipping routes, positioning it to compete with ports in Singapore and Sri Lanka. The agreement marks the end of a protracted arbitration process initiated by the state port authorities against Adani Ports for the five-year delay in completing the project's first phase.
Trial operations for the first phase, which had a capacity of 1 million TEU (twenty-foot equivalent units), commenced in July, with full commercial operations expected to start next month, according to officials. Kerala Chief Minister Pinarayi Vijayan stated on X that as the port's second and third phases near completion by 2028, the $1.2 billion investment will boost the facility's capacity to 3 million TEU.
Adani Ports, a subsidiary of billionaire Gautam Adani's conglomerate, initially aimed to begin operations in 2018 but encountered delays due to land acquisition issues, as local residents protested against the port, citing concerns about coastal erosion.
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