OREANDA-NEWS. L&T Infrastructure Development Projects (“L&T IDPL”), a subsidiary of L&T, and Tata Steel Limited (“Tata Steel”), announced that they have executed a definitive agreement with Adani Ports & Special Economic Zone (“Adani Ports”) to sell 100% stake in the Dhamra Port Company Limited (“DPCL”) for an Enterprise Value of around 5500 crore. As per the agreement entered into amongst the parties, the transaction is subject to customary conditions precedent including lenders / third party approvals.

DPCL is a 50:50 joint venture between L&T IDPL and Tata Steel. The port was commissioned in May 2011 with an 18 km approach channel and a dedicated 62.7 km rail link to Bhadrak. In FY 2014, DPCL handled 14.3 mtpa of cargo.

Dhamra Port is a deep draft, all weather multi-user port located on the East Coast of India in the state of Odisha. Dhamra Port has been granted a concession by the Government of Odisha to build and operate a port on BOOST (Build, Own, Operate, Share and Transfer) basis. Dhamra Port commenced operations in May 2011.

As part of L&T IDPL's review of its investments portfolio, the Board of the Company has approved the divestment of its equity holding on the JV at an attractive valuation.