Tata Steel on Wednesday said it will acquire 51 per cent stake of Creative Port Development Pvt (CPDPL), a move that may optimise in-bound and out-bound supply chain for its steel plants.
"Tata Steel today executed the share purchase agreement to acquire 51 per cent shares of CPDPL from CI Mega Projects Pvt Ltd," the steel firm said in a filing to BSE.
The agreement will be effective subject to fulfilment of certain conditions.
Tata Steel has also executed a shareholder agreement with CPDPL and its promoters for development of Subarnarekha Port through SPV, Subarnarekha Port Pvt (SPPL), and the shareholders agreement will take effect on closing of the share purchase agreement, it said.
However, the company did not disclose the deal figure and added that the exact cost of acquisition will only be known at the completion of the project. The current outlay for the acquisition is approximately Rs 120 crore.
"The cost of acquisition will depend on the capital outlay of the project. The capital outlay is currently under investigation and will be firmed up only after studies are completed," it said.
Indicative time period for completion of the acquisition is approximately six months, the firm said. The company further said the object of acquisition is "to derisk and optimise the in-bound and out-bound supply chain for the company's steel plant".
CPDPL in January 2008 had executed a concession agreement with the government of Odisha to develop the Subarnarekha Port. As of date, CPDPL has not started operations. Incorporated in 2006, it is jointly promoted by Ramani Ramaswamy and Ramaswamy Rangarajan.
As per the agreements, Tata Steel will acquire majority equity stake in CPDPL, and the port development is envisaged through a wholly-owned subsidiary, SPPL, the company said in a a statement.
The acquisition and development is subject to certain conditions precedent, detailed technical assessments and financial closure.
Tata Motors launches electric, hybrid buses priced up to ₹2 crore
Witn an aim to push green technology in mass public transportation vehicles in India, Tata Motors on Wednesday launched a fully electric bus and a hybrid one, with indicative prices ranging between Rs 1.6 crore and Rs 2 crore. The company, which is leader in the commercial vehicles space in the country with a market share of around 45 per cent, also showcased its LNG powered bus. Besides, it also unveiled a bus with fuel cell technology and electric versions of its light commercial vehicles SuperAce, Magic and Magic Iris.
"At Tata Motors our aim is to not only comply with emerging regulations of clean and green emissions but also be ahead of the requirements," Tata Motors Commercial Vehicles Executive Director Ravindra Pisharody said.