Kakinada/New Delhi, Sep 25 (IANS): Infrastructure major GMR Infrastructure Limited (GIL) is divesting its entire 51 per cent stake in Kakinada Special Economic Zone (KSEZ), amounting up to Rs 2,610 crore to reduce indebtedness.

"GIL today announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding Limited (GSPHL) of its entire 51 per cent stake in Kakinada SEZ to Aurobindo Realty and Infrastructure Private Limited (ARIPL)," said a GIL spokesperson.

Kakinada is 220 km north east of Vijayawada.

Of the total consideration of Rs 2,610 crore, GIL would receive Rs 1,600 crore first and the balance Rs 1,010 crore in the next 2-3 years, contingent to some agreed milestones.

"As part of the proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port Limited (KGPL) held by KSEZ would also be transferred to Aurobindo Realty," he said.

KSEZ is engaged in the business of implementing port based multi-product SEZ project at Kakinada in East Godavari district of Andhra Pradesh, on the east coast of India by the Bay of Bengal.

AP government granted concession to KGPL to set up greenfield commercial port in Kona village of East Godavari district.