Gautam Adani to consolidate all rail assets under single company
RAILWAYS & METRO RAIL

Gautam Adani to consolidate all rail assets under single company

Industrialist Gautam Adani is ready for consolidation of all the railway assets in a single entity, therefore removing duplication and building scale, which will help him in bidding for projects having a higher net worth.

Adani will be bringing the six rail assets; their portfolio comprises 690 km of track length under the Adani Tracks Management Services, which is completely a part of the listed Adani Ports and Special Economic Zone (APSEZ).

Adani is currently aiming for a 2,000 km total track length portfolio by 2025. The consolidation will enable Adani to take part in projects of public-private partnership (PPP) of the Indian Railways, without competing with similar businesses in the Adani portfolio.

According to the rail plan 2020 for India, the Indian Railways will be making an investment of over Rs 3 lakh crore for more than 10 years for the construction of new railway lines. The shift of the government’s focus from the road to railways as the favored mode of transport, for obvious economic and environmental reasons, will need substantial participation from the private sector as well.

Adani rail portfolio is built majorly via acquisitions and public-private partnerships. Adani purchased 20% in the Kutch Railway, remaining is owned by the government, which covers a track length of 301 km. This is also the longest rail track in the portfolio.

He has acquired the Krishnapatnam Rail Company, which covers a track length of 113 km. He earned an equity interest of approximately 13% in the acquisition of Krishnapatnam Port located in Andhra Pradesh, which is India’s second-largest private-sector port. The remaining 87% of Krishnapatnam Railway is owned by the government.

Consolidation of railway transportation businesses under a single Adani Tracks Management Services will assist in channelising investments to the entity as against several entities having a play in the similar segment.

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Industrialist Gautam Adani is ready for consolidation of all the railway assets in a single entity, therefore removing duplication and building scale, which will help him in bidding for projects having a higher net worth. Adani will be bringing the six rail assets; their portfolio comprises 690 km of track length under the Adani Tracks Management Services, which is completely a part of the listed Adani Ports and Special Economic Zone (APSEZ). Adani is currently aiming for a 2,000 km total track length portfolio by 2025. The consolidation will enable Adani to take part in projects of public-private partnership (PPP) of the Indian Railways, without competing with similar businesses in the Adani portfolio. According to the rail plan 2020 for India, the Indian Railways will be making an investment of over Rs 3 lakh crore for more than 10 years for the construction of new railway lines. The shift of the government’s focus from the road to railways as the favored mode of transport, for obvious economic and environmental reasons, will need substantial participation from the private sector as well. Adani rail portfolio is built majorly via acquisitions and public-private partnerships. Adani purchased 20% in the Kutch Railway, remaining is owned by the government, which covers a track length of 301 km. This is also the longest rail track in the portfolio. He has acquired the Krishnapatnam Rail Company, which covers a track length of 113 km. He earned an equity interest of approximately 13% in the acquisition of Krishnapatnam Port located in Andhra Pradesh, which is India’s second-largest private-sector port. The remaining 87% of Krishnapatnam Railway is owned by the government. Consolidation of railway transportation businesses under a single Adani Tracks Management Services will assist in channelising investments to the entity as against several entities having a play in the similar segment. Image Source

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