Adani Ports To Get Letter Of Intent From Bengal Govt For Tajpur Deep Sea Port. Shares Rise 2%

The state government said the greenfield project will entail a total investment of Rs 25,000 crore, of which Rs 15,000 crore will go towards port development and the rest toward building infrastructure

The state government expects the port will create 25,000 direct jobs and over 100,000 indirect jobs. ( Image Source :AFP )

Adani Ports & Special Economic Zone has said that soon it will get the Letter of Intent (LoI) from West Bengal government to develop the Tajpur deep sea port. Following the news, shares of Adani Ports & Special Economic Zone gained over 2 per cent at open on Thursday.

At 2 pm, the share was quoting Rs 946.40 apiece, up 1.49 per cent on the BSE, while the benchmark Nifty 50 index was in the red zone. On the NSE, it was among the most active shares with volumes of 2,836,090.

The Bengal government said the greenfield project will entail a total investment of Rs 25,000 crore ($3.1 billion), of which Rs 15,000 crore will go towards port development and the rest toward building related infrastructure, it said.

The state government expects the port will create 25,000 direct jobs and over 100,000 indirect jobs.

Meanwhile, brokerages are positive on the stock. ICICI Direct has a Buy rating on the stock. It has a target price of Rs 1,150. "West Bengal is offering 1000 acres with a concession of 99 years against the usual 30-35 years", said the brokerage, citing it as a big positive.

Edelweiss has a Buy call on the stock, with a target price of Rs 960. “Given a range break out on monthly chart after 18 months of consolidation with rising volume and open interest” according to the brokerage firm.

According to a news release, the state government said that the RFP (Request for Proposal) for development of Tajpur Port on ‘Design, Build, Operate and Transfer Model’ was published by the state government in October last year.

On the other hand, Adani Transmission Ltd has submitted its Green House Gases emission reduction plans and targets to Science Based Targets initiative (SBTi), an international initiative for containing global warming.

Adani Transmission has submitted its detailed plan and targets for GHG emission reduction to SBTi within one year from its commitment to contribute to contain global warming. As a part of its continued focus on sustainable growth and its net zero journey, Adani Transmission committed for the SBTi in October 2021.