The CCI has approved Adani Ports and Special Economic Zones Limited’s acquisition of 89.6% of Gangavaram Port Limited’s equity shareholding.
The Competition Commission of India (CCI) has approved Adani Ports and Special Economic Zones Limited’s acquisition of 89.6 percent of Gangavaram Port Limited’s equity shareholding under section 31(1) of the Competition Act. The planned merger includes APSEZ acquiring 89.6 percent of GPL’s shareholding (i.e., the company that operates Gangavaram port).
APSEZ is a manufacturer of advanced port logistics facilities. It can be found in 11 domestic ports covering six maritime states. Through road or railway, APSEZ handles the whole logistics chain, from vessel management to goods handling, transportation, and so on.
The deep-water port at Gangavaram, Andhra Pradesh, is owned, built, and operated by GPL. It has a concession arrangement with the Government of Andhra Pradesh on a Build-Own-Operate-Transfer basis for a term of thirty years from the date of commercial operations and for a further 20 years.
A Committee on Asset Reconstruction Company Working has been established by the Reserve Bank of India.
The Reserve Bank of India has announced the formation of a committee to conduct a comprehensive review of Asset Reconstruction Companies’ (ARC)s’ position in the financial sector ecosystem. The Committee will make recommendations for appropriate steps to enable such organizations to meet the growing demands of the financial sector. The following is the composition:
1. Shri Sudarshan Sen, former Executive Director, RBI
2. Ms. Vishakha Mulye, Executive Director, ICICI Bank
3. Shri P N Prasad, former Dy. Managing Director, SBI
4. Shri Rohit Prasad, Professor of Economics, MDI, Gurgaon
5. Shri Abizer Diwanji, Partner, Ernst & Young
6. Shri R Anand, Chartered Accountant
The Committee’s terms of reference will be as follows:
I) Examine the current legislative and regulatory system that applies to ARCs and make recommendations for ways to strengthen their effectiveness;
(ii) Examining the importance of ARCs in the settlement of stressed properties, including under the 2016 Insolvency and Bankruptcy Code (IBC);
(iii) Suggestions for increasing security receipt liquidity and trading;
(iv) A analysis of the ARCs’ business models;
(v) Any other issue concerning the activity, accountability, or governance of ARCs.
Within three months of its first meeting, the Committee will present its analysis.