NEW DELHI: The government has decided to ban all companies from Dubai, Hong Kong, China and Pakistan from investing in port infrastructure projects in the country. Consequently, the ports and shipping ministry will reopen bids for at least 10 port projects.
Although FDI proposals from these countries have been rejected earlier on a case-to-case basis, the government is now introducing a blanket ban on companies from these countries at the bidding stage itself. The country-specific ban will be introduced as part of the international bidding document. The move will impact investment plans of major port development companies like DP World and Hutchison in India.
Based on security threats to Indian naval bases, private players from Dubai, China, Hong Kong and Pakistan will no longer be permitted to invest in over 250 ports being developed on a public-private-partnership model in the country. According to government sources, this will be applicable for all facilities, including cargo handling, ground handling and other services, apart from infrastructure development. A joint decision to this effect has been taken by the ministries of defence, home affairs and shipping and department of industrial policy and promotion. |