APSEZ slashes capex to Rs 2,000 cr for FY21
The outlay can be further reduced looking at the situation going forward
Adani Ports and Special Economic Zone (APSEZ) has slashed its capital expenditure (capex) by half to Rs 2,000 crore for FY21.
Discretionary capex will be reduced from an original capex outlay of Rs 4,000 crore to Rs 2,000 crore. This includes maintenance and necessary capacity expansion at Myanmar and Vizhinjam ports.
Moreover, the outlay can be further reduced looking at the situation going forward.
The planned privatisation of the Container Corporation of India (CONCOR) is likely to be pushed back to FY22.
The government has decided to privatise CONCOR by selling 30.8% of its 54.8% stake in the company to a private company along with transfer of management control.
Apart from APSEZ, Hindustan Infralog (HIPL), a joint venture between Dubai-based port company DP World and the National Investment and Infrastructure Fund (NIIF) and PSA International, container port operator, and fully-owned by Temasek Holdings, the sovereign wealth fund of Singapore, are expected to bid for the government’s stake in CONCOR.
The company is organising operational contracts to optimise costs and boost its margin. It is re-aligning the assets to be deployed optimally to avoid further expenditure.
The company had spent Rs 3,615 crore on capex in FY20 which included Container Terminal 2 at Mundra, cranes, cross-country pipelines for the LPG business, liquid tank farms at Hazira and Kattupalli ports, Berth 3 and 3-A at Dhamra port, purchases of railway rakes and the container terminal at Myanmar.