The Union Cabinet on Wednesday gave its approval to exempt India Ports Global Ltd (IPGL), which was incorporated for development and management of Shahid Behesthi Port of Chabahar in Iran, from the Department of Public Enterprises Guidelines except in relation to reservation and vigilance policies.
Briefing reporters about the Cabinet decisions, Information and Broadcasting Minister Prakash Javadekar said that a special subsidiary of Sagarmala company has been formed and exemption from the DPE guidelines will ensure more participation of experts and many other facilities for the project, which will open India's doors to central Asian countries directly.
"Chabahar seaport will be built now at a faster rate and we have formed a special subsidiary of Sagarmala company that will be exempted from Department of Public Enterprise Guidelines because that will ensure more participation of experts and many other facilities that can be granted to complete such an important international project which will open our doors to central Asian countries directly," Javadekar said.
An official release said the 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), (earlier Kandla Port Trust), under administrative control of Ministry of Shipping, for development and management of Shahid Behesthi Port at Chabahar.
After the withdrawal of USA from the Joint Comprehensive Plan of Action (JCPOA) or the Iran nuclear deal, the Ministry of External Affairs in October 2018 advised Ministry of Shipping to exclude JNPT and DPT from the possible impact of US sanctions.
Based on this and with the approval of an empowered committee all the shares of JNPT and DPT were purchased by "Sagarmala Development Company Ltd" (SDCL) in December 2018.
The release said that SDCL is a CPSE, and IPGL being a subsidiary of SDCL, has also become a central public sector enterprise and guidelines of DPE are technically applicable to IPGL.
The release said that Chabahar Port is the country's first overseas port project with strategic objectives and there was an urgent need to allow IPGL to continue to function as a board-managed company, which follows the instructions of Ministry of Shipping and Ministry of External Affairs, without making the guidelines of DPE applicable to it for five years.
The Ministry of Shipping had requested exemptions to IPGL from DPE guidelines for the smooth execution of the project. (ANI)