The Government of Tamil Nadu (India) has given the green light to Adani Ports and Special Economic Zone (APSEZ) to acquire Kattupalli port from L&T Shipbuilding, which is owned by  Larsen and Toubro (L&T), 97%, and  Tamil Nadu Industrial Development Corp. (TIDCO), 5%.

The port is part of a shipyard-cum-port complex developed by L&T Shipbuilding at Kattupalli for a total investment of Rs.39.9 billion (US$599.8 million). 

The 30 year port concession was awarded to L&T Shipbuilding in 2008 as a so-called captive port, a port  used to handle own cargo, without any competitive bid. Later the government authorized the port to handle other commercial cargo.

L&T has to pay an annual share of revenue of 3% during the first 15 years of the contract and a 4.5% for the remaining 15 years. The revenue share will be based on rates approved by the state government. The rate will rise by 20% every three years. APSEZ would have the same concession terms.

Located 5km from Chennai, Kattupalli, the port begun commercial operations in January 2013. The port's facilities comprise a container terminal with a capacity to load 1.2 million twenty-foot equivalent units (TEUs) a year. It has permissions to manage other clean cargo such as automobiles, liquid non-hazardous cargo and break bulk cargo.