GMR Infrastructure Ltd on Friday said it had signed an agreement to sell its entire 51 per cent stake in Kakinada SEZ Ltd (KSEZ) to Aurobindo Realty and Infrastructure Pvt Ltd for ₹2,610 crore. Under the deal, the 100 per cent stake of Kakinada Gateway Port Ltd (KGPL) held by KSEZ will also be transferred to Aurobindo Realty.

GMR holds the KSEZ stake via its wholly-owned subsidiary, GMR SEZ and Port Holding Ltd.

The ₹2,610-crore deal includes the consideration for the equity stake as well as the sub-debt in KSEZ. Of this, ₹1,600 crore will be received on the closing date and the balance ₹1,010 crore over the next two-three years, contingent on certain agreed milestones. The sale is subject to regulatory and other statutory approvals.

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The move is among the steps initiated by GMR over the past few years to reduce its debt burden.

Concession for port

KSEZ is implementing a port-based multi-product SEZ at Kakinada in Andhra Pradesh’s East Godavari district. KGPL has a concession granted by the Andhra Pradesh government to set up a greenfield commercial port in Kona village of East Godavari district.

The GMR Group is developing an industrial zone at Kakinada SEZ, spread over 8,500 acres, and an all-weather, multi-cargo, deep-water port, with an estimated phase 1 capacity of 16 million tonnes.

The SEZ, which is centred in the Kakinada node of the Visakhapatnam–Chennai Industrial Corridor being developed by the Asian Development Bank, is proposed to house various industries including petrochemicals, food and agro processing units. Kakinada is referred to as the ‘Houston of India’ due to the availability of hydrocarbon reserves and the oil and gas infrastructure.

The SEZ, centred in the Kakinada node of the Vizag–Chennai Industrial Corridor, will house petrochemicals, food and agro processing units, among others