Adani Ports and Special Economic Zone (APSEZ) said on Sunday that the company’s composite program to acquire Sarguja Rail Corridor Pvt Ltd (SRCPL) has been approved by the National Company Law Tribunal (NCLT) and will come into effect on the date set. from April 1. 2021. APSEZ said in a statement that the company will now consolidate all rail assets under one business entity Adani Tracks Management Services Pvt Ltd.

“This consolidation allows APSEZ, which is aiming for 2,000 km of track length by 2025, to participate in Indian Railways’ PPP (public-private partnership) projects without having to compete with similar companies in the portfolio. Adani, a position that is in full alignment with minority shareholder participation,” he said.

The statement said that once consolidated, SRCPL will add Rs 450 crore or 5% of APSEZ’s total Ebitda (earnings before interest, tax, depreciation and amortization).

Commenting on the development, APSEZ CEO and full-time director Karan Adani said that in line with the National Rail Plan 2020, Indian Railways will invest more than Rs 3 lakh crore over the next 10 years to construct new new railway lines.

Therefore, this acquisition creates significant business value for APSEZ as a transportation utility, Adani added.

The press release indicates that the acquisition is a transaction between related parties, APSEZ has adopted a completely transparent approach with minority shareholders and creditors for approval.

APSEZ, holding a railway portfolio of 620 km, had issued a proposal to acquire 70 km of Sarguja Rail from another Adani group company.

APSEZ is part of the globally diversified Adani Group.