Work on Mundra port project to continue: Adani group(To go with ‘Supreme Court lifts curbs on Mundra port proejct’)

July 9th, 2008 - 8:33 pm ICT by IANS  

Ahmedabad, July 9 (IANS) The city-based Adani group Wednesday welcomed the Supreme Court order vacating the stay on construction activities at the Rs.74 billion ($1.7 billion) Mundra special economic zone (SEZ). Commenting on the development, the project developer Adani group said in a statement: “Work in the SEZ will continue as per the plans.”

The stock markets greeted the development with an upward rally of shares of Mundra Port and SEZ Ltd by over 15 percent at Rs.525. Adani Enterprise shares also surged by over 10 percent to Rs.727 at intra-day trade.

On July 3, when the apex court stayed the construction work, the stock price of Mundra Port and SEZ Ltd plummeted 18.5 percent during intra-day proceedings.

The port project, located in Kutch district of Gujarat is the largest SEZ in India. Spread over an area of over 6,000 acres, the project is a multi-product private SEZ approved by the Indian government.

The SEZ will house a container freight station (CFS) on the logistics side and will be the home of a cluster of chemicals, dyes and pharma, petrochemicals, textile and apparel, engineering units besides electrical and auto component making units. It will also house a timber and furniture SEZ.

The case against Adani group has been initiated by a group of fishermen on the ground that it will deprive them of their source of livelihood. They said fishing was their only source of livelihood, which they will be forced to give up.

However, the Supreme Court said Wednesday rather than filling or damaging the creek, as alleged by the fishermen, the Adani group has developed it as one of the best natural harbours with 17.5-metre depth, required for anchoring and servicing of biggest vessels.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |