AM/NS India's acquisition of Essar's infra assets to boost steel capacity expansion plans

Integrated steel producer AM/NS India has reached an agreement to acquire the port, power, logistics and other infrastructure of Essar Group for $2.4 billion, according to latest updates available with SteelMint.

The assets are either captive, such as the ports in Gujarat, Andhra Pradesh and Odisha, or are allied to AM/NS India's steelmaking, which is expected to strengthen the company's manufacturing and logistics chain.

The port assets are a) a 25 mnt/year jetty at Hazira terminal, Gujarat, right beside the company's steel plant; b) a 16 mnt/year deep draft terminal at Visakhapatnam along with a conveyor to the company's 8 mnt/year pellet plant; c) a 12 mnt/year deep-water jetty in Pradip, Odisha, connected by a conveyor with the company's 12 mnt/year pellet plant.

The power plants acquired are a) a 270 MW multi-fuel plant in Gujarat, with long-term power purchase agreement with the company's steel plant; and b) a 515 MW gas-based power plant with adjacent land for the steel plant.

In addition, the 100 km Kandhar-Hazira transmission line will connect the grid with the steel plant.