Indian Bank has taken over 52.46 per cent equity stake in Karaikal Port Private Limited (KPPL) previously owned by Marg Limited. KPPL is a special purpose vehicle (SPV) incorporated for the implementation and operation of Karaikal port. The majority stake was taken over by the bank following a default in loan repayment by Marg Limited. However, the bank cannot sell the shares to a third party due to a court order. The equity stake of Marg Limited in the project has now reduced to 15.12 per cent from the earlier 67.58 per cent.
KPT signed a concession agreement with Kandla International Container Terminal Private Limited (KICTPL) on February 29, 2016, for the development, operation and maintenance of a container terminal at Berth Nos. 11 and 12. KICTPL will be responsible for financing, designing, constructing and commissioning the project, along with the operation, management and maintenance for a concession period of 30 years. The estimated cost of the project is Rs 1.59 billion. The project was awarded to International Cargo Terminals and Infrastructure Private Limited following which an SPV, KICTPL, was formed for project execution.