Govt okays Dubai Port's India restructuring

It allows creation of an Indian holding company of Dubai Port World to operate and manage terminal operations at major ports

The central government has approved a proposed change in shareholding at the Container Terminal Projects of Dubai Port World (DPW) Ltd in major ports.

It allows creation of an Indian holding company of DPW to operate and manage terminal operations at major ports, with some safeguards.

DPW plans to consolidate the ownership of its port infrastructure in India into a single holding company, Hindustan Ports Pvt Ltd (HPPL). The new company will take over all liabilities of the existing subsidiaries of DP World in concession agreements. The ultimate legal ownership will continue to be DP World.

The Government has agreed to DPW's proposal for restructuring, subject to the condition that the net worth of the holding company, HPPL, after acquisition of the shares of project Special Purpose Vehicles shall be higher than $80 million.

Dubai Port has six container terminals in India, including Vallarpadam in Kerala. Restructuring of the assets will help in better coordination and control, as the port authorities would deal with a single company registered in India, it stated. The approval is also expected to promote foreign investment in the sector.