Adani Ports returns coal handling terminal

News: As per media sources, Adani Ports has returned a coal handling terminal to Visakhapatnam Port Authority a few years into a 30-year contract, as it turned unviable due to changed business conditions. The interim award of the three-member arbitration panel was given in December 2021 and the port authority paid Rs.155 crore to APSEZ last week and the terminal was handed back.

Views: The coal terminal contract, bid out to handle only imported steam/thermal coal, collapsed after the government made policy changes to promote use of domestic coal, cutting imports of the commodity, which drastically reduced volumes at the terminal.

Impact: Neutral