Nod to Adani’s windmill projects in Lanka

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Adani Green Energy was issued provisional approvals for two wind projects of 286 MW in Mannar and 234 MW in Pooneryn …SUSITHA FERNANDO

Adani Green Energy was issued provisional approvals for two wind power projects in northern province for an investment of over $ 500 million, Sri Lanka’s Energy Minister Kanchana Wijesekara has announced.

Wijesekara said in a tweet that he met officials of Ceylon Electricity Board (CEB) and Sustainable Development Authority on Tuesday to discuss the progress of renewable energy projects.

Adani Green Energy was issued provisional approvals for two wind projects of 286 MW in Mannar and 234 MW in Pooneryn for an Investment of over $500 million, he added.

“21 of 46 Projects that were delayed due to CEB Act amendments will enter into PP agreements next week. 26 Renewable proposals from EOIs that were given Provisional Approvals to be expedited with Grid clearance and transmission plans and other proposals to be evaluated within 30 days,” the minister said in another tweet.

Meanwhile, Adani Logistics Ltd (ALL), a wholly owned subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ), has signed a definitive agreement to acquire the ICD “Tumb” (Vapi) from Navkar Corporation Ltd for an enterprise value of Rs 835 crore.

The deal comprises acquisition of the operational ICD with capacity to handle 0.5 million TEUs. The associated 129 acres of land provides an additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along these DFC routes.

The Tumb ICD has a private freight terminal with four rail handling lines connected with Western DFC and has custom notified land & bonded warehouse facilities.

“Tumb is one of the largest ICDs in the country. Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira & Nhava Sheva,” said Karan Adani, CEO and Whole Time Director of APSEZ.

“In addition to cargo moving by rail being 5X greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that is expected to be 10 hours by rail versus 24 hours by road. This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door to door services to our customers. We are confident to grow the volumes at the ICD at high double digits as we build out a sustainable world class multi-modal supply chain solution for the nation.”

The acquisition based on the land value and replacement cost of existing assets is priced at an enterprise value of Rs 835 crore, implying an EV/EBITDA multiple of 7.8x (based on FY23(E) EBITDA). The deal is subject to customary regulatory and lender’s approvals and is expected to close in Q2 FY23.

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