The Indian government issued today its approval to the proposed change in shareholding in the Container Terminal Projects of Dubai-based port operator Dubai Port World (DPW) Limited in major ports.
The green light allows for the creation of an Indian holding company to DPW to operate and manage the terminal operations at the existing major ports “subject to certain safeguards”, the government said in a statement.
“The decision will promote foreign direct investment and private sector participation in the port sector,” the statement reads.
As informed, DPW Limited is contemplating restructuring of its assets in India with the objective of consolidating the ownership of its port infrastructure in India into a single holding company namely, Hindustan Ports Private Limited (HPPL).
The new company is expected to take over all liabilities of the existing subsidiaries of DP World in relation to the concession agreements.
” The proposal of DPW is intended to help them to expand the capital base and enable fresh investments in ports and logistics infrastructure in India. This will enable efficient access of finance and introduce latest technology in port operation,” the statement adds.
The government has agreed to the proposal subject to the condition that the net worth of the holding company HPPL after acquisition of the shares of the project SPVs shall be higher than USD 80 million.