The Andhra Pradesh government has in principle decided to divest its 10 per cent equity in Gangavaram port even as its approval of Adani’s acquisition of the remaining stake ran into rough weather.

Adani group has recently acquired about 90 per cent stake in the port and offered to buy the remaining also, which is owned by the government. However, the infra major’s proposal to merge the Gangavaram Port Limited (GPL) into its Adani Ports and Special Economic Zone (APSEZ) may not be approved by the government.

Sources told this correspondent that the Cabinet which would meet on Tuesday would grant in-principle approval for the disinvestment.

The government had already constituted a three-member high-level official committee to examine Adani’s offer.

Once the cabinet clears the disinvestment, the government would explore the possibilities of fetching maximum revenue out of the equity sale. Sources said Adani offered the same price for which he bought 58.1 per cent equity from original promoter D.V.S. Raju and his family and 31.5 per cent from a global private equity firm Warburg Pincus. As per Adani’s valuation, the state will get around Rs 645 crore.

Source :Deccan Chroicle