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Dubai Ports'UK deal may have Indian fallout |
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4/18/2006 9:37:06 AM |
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The mega deal of Dubai Ports World acquiring UK’s Peninsular & Oriental Ports (P&O Ports), which created a furore in US, may have an Indian fallout too.
Jawaharlal Nehru Port Trust (JNPT) now has legal opinion that government needs to examine if its policy on monopoly of ports is applicable to this global takeover deal.
Sources said, legal opinion was sought recently on two issues. One - whether the acquisition by Dubai Ports had breached the July 1997 licence agreement between Nhava Sheva and P&O Ports-run private terminal - Nhava Sheva International Container Terminal (NSCIT).
The other - what would be the impact of global acquisition on government policy to prevent monopoly in ports.
The NSICT, country's first private terminal at JNPT in Navi Mumbai, has been through many changes in its composition and is now owned by SA Ports Ltd, which in turn is owned by P&O Australia.
As per the legal opinion, sources said, there was no breach of the original agreement between JNPT and NSICT but there were reasons for the central government to examine the global acquisition on the basis of its monopoly policy.
In India, after acquiring P&O, Dubai Ports will control most container terminals barring the one at Pipavav and two at JNPT, say experts.
Dubai Ports already had a presence in India before it enlarged its footprint after its global deal. Experts also note that India's policy against monopoly of any port is very strong.
The government's port policy of 1996-97 provided that Port Trusts should ensure that there is no private monopoly.
The P&O take over by Dubai Ports had created immense paranoia and uproar in US.
It deal meant that Dubai Ports took over all the subsidiaries of P&O as well. The Americans feared 'Arab control'of ports.
Eventually, Dubai Ports had agreed to give back its operations at six US ports, bagged as part of a P&O Ports acquisition, to an American entity following strong opposition in US.
The port policy had been the basis on which the Bombay high court in January 2003 upheld the exclusion of P&O Australia's bids for a project to convert the bulk terminal at JNPT into a container terminal |
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