Adani gets green light for Mundra expansion

NEW DELHI Wed Jul 16, 2014 6:15pm IST

A general view of a container terminal is seen at Mundra Port in the western Indian state of Gujarat April 1, 2014. REUTERS/Amit Dave/Files

A general view of a container terminal is seen at Mundra Port in the western Indian state of Gujarat April 1, 2014.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   
Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

NEW DELHI (Reuters) - The new government has given Adani Ports and Special Economic Zone (APSE.NS) the green light to develop an 8,481 hectare coastal plot of land in western India, clearing the way for the group to build a huge desalination plant, Adani said on Wednesday.

The clearance process had stalled under India's previous government, which lost power to Prime Minister Narendra Modi in May, and Adani has waited several years to get the go-ahead.

Adani, part of billionaire Gautam Adani's conglomerate, said in a statement the environment ministry had granted environment and coastal regulation zone clearance for its Mundra Special Economic Zone, a huge industrial hub where it also plans to build an effluent treatment plant.

Since investing billions of dollars into an area with large swathes of marshy wasteland, Adani has transformed Mundra into an industrial zone hosting India's largest commercial port and the country's largest privately-owned power plant.

The rapid growth of Mundra, a once-remote coastal town on the Gulf of Kutch in Gujarat, has prompted some opponents to say the local government, then headed by Modi, favoured Adani with cheap land. Adani denies he has been granted any undue favours.

Adani's rapid ascent to the top tier of Indian business is often associated with the rise of Modi. Shares in listed Adani Enterprises (ADEL.NS) have surged almost 70 percent this year, largely in the run-up to Modi's election victory in May.

Adani Ports' stock closed up 6.82 percent on Wednesday, outpacing a 1.27 percent rise in the benchmark .BSESN.

Long pushed by India as a way to encourage foreign direct investment and grow exports, special economic zones are exempt from certain labour laws, as well import and excise duties.

(Reporting by Tommy Wilkes, editing by David Evans)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Market Eye

Market Eye

Sensex, Nifty retreat from record highs on profit-taking.  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage