JNPT-DPT saved from US sanctions
The Union Cabinet has exempted the India Ports Global Ltd (IPGL) from the Department of Public Enterprises (DPE) Guidelines for smooth execution of the development and management of Shahid Behesthi Port of Chabahar in Iran.
Exception in this approval is the reservation and vigilance policies, said the Shipping Ministry on 26 Feb 2020.
This follows as US had withdrawn from the Joint Comprehensive Plan of Action (JCPOA) which could have had an impact on other projects with IPGL.
Since Chabahar Port is Country’s first overseas port project with strategic objectives, there is an urgent need to allow IPGL to continue to function as a Board managed company, duly following the instructions of Shipping Ministry and External Affair Ministry, without making the guidelines of DPE applicable to it for a period of 5 years.
IPGL was incorporated under Companies Act 2013, as a Special Purpose Vehicle jointly promoted by Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (DPT), under Administrative control of Shipping Ministry for development and management.
Subsequent to the withdrawal of the US from JCPOA, the External Affair Ministry had advised Shipping Ministry on 29 October 2018 to exclude JNPT and DPT from possible impact of US sanctions, said the Shipping Ministry.
Based on this and with the approval of Empowered Committee all the shares of JNPT & DPT were purchased by Sagarmala Development Company Ltd (SDCL) on 17 December 2018.
SDCL is a Central Public Sector Enterprise (CPSE) and therefore IPGL being subsidiary of SDCL has also become a CPSE. As a result, Guidelines of DPE are technically applicable on IPGL.
Accordingly, the Shipping Ministry had requested exemptions to IPGL from the applicability of the DPE guidelines, for smooth execution of the port project in Iran. fiinews.com
