+
AM/NS now controls Vizag Port's ore complex post security clearance
PORTS & SHIPPING

AM/NS now controls Vizag Port's ore complex post security clearance

ArcelorMittal Nippon Steel India (AM/NS India) has assumed control of a 16 million tonne (mt) capacity iron terminal at state-run Visakhapatnam Port from a unit of Essar Group, after the long-pending security clearance from the Union government was received for a deal announced in 2022.

AM/NS received security clearance in early March, after which the Essar unit was relieved of its duties as the promoter/operator of the terminal. The Visakhapatnam Port Authority also collected approximately Rs 540 million in dues from the Essar unit before allowing the change in the terminal?s shareholding.

The terminal, recognised as India?s largest ore handling complex, has been acquired by ArcelorMittal Nippon Steel India, a joint venture between ArcelorMittal and Nippon Steel, two of the world?s top steelmakers.

Despite the deal being announced in 2022, the acquiring entity was unable to assume control until it obtained security clearance from the government, as per Clause 11.2 of the concession agreement.

A change in shareholding in a public-private-partnership (PPP) terminal at a major port is contingent upon two conditions. Firstly, the new shareholder must meet the eligibility criteria stipulated by the port authority at the time of tender issuance for the project. Secondly, the new stakeholder must obtain security clearance from the government.

In 2022, AN/NS India acquired various port, power, and other logistics and infrastructure assets from the Essar Group for $2.05 billion (approximately Rs 165 billion) which are integral to the steel plant at Hazira, acquired under India?s bankruptcy law.

This acquisition included a 25 mt captive port alongside a 270 MW power plant at Hazira, adjacent to AM/NS India?s flagship steel plant, a 16 mt deep draft terminal at Visakhapatnam Port alongside an integrated conveyor connected to AM/NS India?s 8 mt iron ore pellet plant in the port city, a 12 mt deep-water jetty at Paradip Port in Odisha alongside a dedicated conveyor managing pellet shipments from AM/NS India?s Paradip pellet plant.

The deal also encompassed a 515 MW gas-based power plant, in addition to allied land suitable for AM/NS India?s expansion plans at Hazira. These assets are either captive or related to AM/NS India?s steelmaking and are expected to bolster the strategic integration of the Company?s manufacturing and logistics chain. This will ensure seamless connectivity and supply chain security for the movement of raw materials and finished goods between the steel maker?s manufacturing facilities in western, eastern, and southern India, as well as for exports, as stated by AM/NS upon announcing the deal.

ArcelorMittal Nippon Steel India (AM/NS India) has assumed control of a 16 million tonne (mt) capacity iron terminal at state-run Visakhapatnam Port from a unit of Essar Group, after the long-pending security clearance from the Union government was received for a deal announced in 2022. AM/NS received security clearance in early March, after which the Essar unit was relieved of its duties as the promoter/operator of the terminal. The Visakhapatnam Port Authority also collected approximately Rs 540 million in dues from the Essar unit before allowing the change in the terminal?s shareholding. The terminal, recognised as India?s largest ore handling complex, has been acquired by ArcelorMittal Nippon Steel India, a joint venture between ArcelorMittal and Nippon Steel, two of the world?s top steelmakers. Despite the deal being announced in 2022, the acquiring entity was unable to assume control until it obtained security clearance from the government, as per Clause 11.2 of the concession agreement. A change in shareholding in a public-private-partnership (PPP) terminal at a major port is contingent upon two conditions. Firstly, the new shareholder must meet the eligibility criteria stipulated by the port authority at the time of tender issuance for the project. Secondly, the new stakeholder must obtain security clearance from the government. In 2022, AN/NS India acquired various port, power, and other logistics and infrastructure assets from the Essar Group for $2.05 billion (approximately Rs 165 billion) which are integral to the steel plant at Hazira, acquired under India?s bankruptcy law. This acquisition included a 25 mt captive port alongside a 270 MW power plant at Hazira, adjacent to AM/NS India?s flagship steel plant, a 16 mt deep draft terminal at Visakhapatnam Port alongside an integrated conveyor connected to AM/NS India?s 8 mt iron ore pellet plant in the port city, a 12 mt deep-water jetty at Paradip Port in Odisha alongside a dedicated conveyor managing pellet shipments from AM/NS India?s Paradip pellet plant. The deal also encompassed a 515 MW gas-based power plant, in addition to allied land suitable for AM/NS India?s expansion plans at Hazira. These assets are either captive or related to AM/NS India?s steelmaking and are expected to bolster the strategic integration of the Company?s manufacturing and logistics chain. This will ensure seamless connectivity and supply chain security for the movement of raw materials and finished goods between the steel maker?s manufacturing facilities in western, eastern, and southern India, as well as for exports, as stated by AM/NS upon announcing the deal.

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?