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New Delhi, February 27, 2020
The Union Cabinet on Wednesday approved the exemption of India Ports Global Ltd (IPGL) from the DPE Guidelines, except reservation and vigilance policies.
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 the administrative control of the Ministry of Shipping, for development and management of Shahid Beheshti 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 October 29, 2018, to exclude JNPT and DPT from the possible impact of US sanctions.
Based on this and with the approval of Empowered Committee all the shares of JNPT and DPT were purchased by Sagarmala Development Company Ltd (SDCL) on December 17, 2018. SDCL is a CPSE and IPGL being subsidiary of SDCL has also become a CPSE. As a result, Guidelines of DPE are technically applicable to IPGL.
Since Chabahar Port is India's first overseas port project with strategic objectives, there was 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 the Ministry of External Affairs, without making the guidelines of DPE applicable to it for a period of five years, an official press release said.
Accordingly, the Ministry of Shipping had requested exemptions to IPGL from the applicability of the DPE guidelines, for smooth execution of the project, the release added.