Port and Rail Project
Adani enters Arrangements for USD 1.65 billion Port and Rail Project
26.08.2010 | Deskman: Marcel Dröttboom
Ahmedabad, India – Adani Enterprises, through its step-down Indonesian subsidiary, PT Adani Global, has entered into a binding tripartite agreement for setting up a dedicated rail and port project with the regional government of Sumatra Selatan , Indonesia and PT Bukit Asam. The project is estimated to cost USD 1.65 billion and will be constructed within 48 months.
The project provides ‘Coal Purchase Rights’ to Adani and the infrastructure created will be used for transportation of a minimum volume of 35 million tonnes of coal per year on a ‘take or pay’ basis from PT Bukit Asam concessions in South Sumatra. The concession is initially valid for a maximum period of 30 years, which can be extended by mutual agreement. The project envisages the ownership, construction and operation by Adani of 250 kilometres rail line capable of transporting a minimum 35 million tonnes of coal per year (expandable to 60 million tonnes per year). The rail line will connect Tanjung Enim, a coal mining area to Tanjung Carat, where Adani will build a port with matching capacity for evacuating the coal.
The project is estimated to cost USD 1.65 billion and will be constructed within 48 months. The Government of South Sumatra, Indonesia has undertaken to provide and facilitate all permits and approvals and arrange for all land for rail and port required for the project.
Adani has a large coal mining setup in East Kalimanthan and the present initiative in Sumatra will further strengthen its coal sourcing reach from Indonesia. It has recently acquired 100 per cent interest in one of the largest coal tenements in Australia, too. The coal from its Indonesian and Australian sources would support and enable the rapid expansion of its power and coal businesses.
This article is protected by copyright. You want to use it for your own purpose? Infos can be found under www.mycontentfactory.de (ID: 358316)
