New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi today approved the exemption of India Ports Global Ltd (IPGL) from the Department of Public Enterprises (DPE) Guidelines, except reservation and vigilance policies. IPGL was incorporated under the Companies Act, 2013, as a Special Purpose Vehicle (SPV) jointly promoted by the Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (DPT) – earlier known as the Kandla Port Trust (KPT) – under administrative control of the Ministry of Shipping, for development and management of Shahid Behesthi Port of Chabahar in Iran.
Subsequent to the withdrawal of the USA from the Joint Comprehensive Plan of Action (JCPOA), the Ministry of External Affairs advised the Ministry of Shipping on 29 October 2018 to exclude JNPT and DPT from possible impact of US sanctions.
Based on this and with the approval of the Empowered Committee, all the shares of JNPT & DPT were purchased by Sagarmala Development Company Ltd (SDCL) on 17 December 2018. SDCL is a CPSE, and IPGL being a subsidiary of SDCL has therefore also become a CPSE. As a result, guidelines of DPE are technically applicable to IPGL.
Since Chabahar Port is the 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 the Ministry of Shipping and Ministry of External Affairs, without making the guidelines of DPE applicable to it for a period of 5 years, the Govt stated in a Press communication. Accordingly, the Ministry of Shipping has requested exemptions to IPGL from the applicability of the DPE guidelines for smooth execution of the project.
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