Govt seeks legal opinion on Dubai Ports deal

Following the footsteps of the US, the government is taking legal opinion from the Solicitor-General on the security and monopoly threat issues following the acquisition of six port terminals by the Dubai Ports World.

By acquiring UK-based ports and ferries company Peninsular and Oriental Steam Navigation Co (P&O Ports), Gulf-based Dubai Ports has now got six port terminals of the country under its direct control.

Significantly, Dubai Ports had returned ports in the US, which it had got through P&O acquisition, to a US entity following protests by Congress leaders who cited security threat.

"We are examining the concession agreements signed by P&O Ports with the respective port trusts of the country. We are also seeking legal opinion from the Solicitor General of India to assess the implications of the takeover," said Ministry of Shipping Joint Secretary (Ports) A K Bhalla.

He said the government was also planning to seek the help of a private legal firm to evaluate the possible security and monopoly threat to the nation.

Asked whether there was any prima facie violation of agreement signed by P&O Ports, Bhalla said there was no breach of agreement adding "security is the supreme priority for India."

"The concession agreement signed by P&O Port with each port trusts are stand-alone agreements. This differs from terminals to terminals. At present, there is no threat of monopoly or security," he said.

"But the moment we feel there is a threat of monopoly or security, we have included sufficient provisions in the agreement to suspend the operations of a particular player in a terminal," Bhalla added.

Meanwhile, Jawaharlal Nehru Port Trust and Chennai Port Trust are also seeking legal advice for examining the contracts signed with P&O Ports for their respective private terminals.

Earlier, Gujarat Mairitme Board (GMB) had also sent a showcause notice to P&O Ports for not informing them about the change in the management, in thecontainer terminal operated at Mundra Port.

With the $ 6.8 billion acquisition of Dubai Ports had given a direct control over Nhava Sheva International Container Terminal (NSICT) at Navi Mumbai, Chennai Container Terminal, Mundra International Container Terminal (MICT) and Kulpi Port (West Bengal).

DP World had already bagged the Build Operate Transfer (BOT) project for developing international container transhipment terminal at Vallarpadam (Kerala) and operating Visaka Container Terminal in association with Mumbai-based JM Baxi in Visakhapatnam Port.