Adani Ports and Special Economic Zone Limited said in a filing to National Stock Exchange of India (NSE) that it has entered into a non-binding Memorandum of Understanding with compatriot L&T Shipbuilding Limited (L&T) for evaluating the operations of the port at Kattupalli, Tamil Nadu.
The deal entered into effect from October 1, 2015 and is scheduled to last for a period of one month.
As informed, the definitive agreements would be entered into later.
“While all non-operating revenues and expenses will be to L&T s account. Adani shall be responsible for EBIDTA gains and losses arising from the port operation for this period, ” the announcement reads.
As stipulated by the agreement, the shipyard located at the port would continue to be managed and operated by L&T.
The announcement comes on the back of reports on Adani Group’s interest in taking over the operational and management control of L&T Kattupalli International Container Terminal near Chennai as it pushes to secure a greater foothold on India’s east coast.
Kattupalli International Container Terminal (KICT) is being developed by L&T Shipbuilding Limited (LTSB) within a project that includes an integrated shipyard cum port with an initial annual capacity of 1.2 million TEUs at Kattupalli.
LTSB is a Joint Venture of Larsen & Toubro (L&T) and TIDCO. The LTSB shipbuilding facilities specialize in building commercial ships, defence ships including submarines, refitting and re-engineering of commercial and defence ships and offshore platforms.