MPSEZ to set up port in Indonesia

Mundra Port and Special Economic Zone (MPSEZ) on Wednesday said it would participate in the Indonesian project to setup the port facility to handle coal transported by Adani Enterprises.

PT Adani Global, Indonesian unit of Adani Enterprises, has entered into binding tripartite agreement for setting up a rail and port project with the government of Sumatra Selatan, Indonesia and PT Bukit Asam.

The project provides coal purchase rights to Adani and the infrastructure created will be used for transportation of a minimum volume of 35 million metric tonnes per annum (MMPTA) of coal from PT Bukit Asam concessions in South Sumatra, Adani Enterprises said in a statement.

Adani, through its various subsidiaries, will construct 250 KM rail line to transport the coal. The rail line will connect Tanjung Enim, a coal mining area, to Tanjung Carat, where Adani will build a port with matching capacity for evacuating the coal. 

The project is estimated to cost $1.65 billion and will be constructed within 48 months, Adani said.

Shares of MPSEZ lost 0.91 per cent at Rs 794, while those of Adani Enterprises declined 2.92 per cent to Rs 648.95, both on the Bombay Stock Exchange (BSE).