JNPT may review deal with P&O Ports

There is no respite for controversies and monopoly fears in the mega deal of Dubai Ports World acquiring UK's Peninsular & Oriental Ports (P&O Ports).

Taking a cue from the Gujarat Maritime Board (GMB), the Jawaharlal Nehru Port Trust (JNPT) is also planning a re-look into the concession agreement signed between the port and P&O Ports run private terminal, Nhava Sheva International Container Terminal (NSICT).

NSICT is the first private terminal in the country at JNPT in Navi Mumbai.

"We are reviewing the concession agreement signed between the port and P&O Ports. We have sought legal advice on this matter, which is expected in few days," said Ravi B Budhiraja, chairman, JNPT.

Budhiraja said the trustees of the JNPT board will take an appropriate decision following the legal advice.

Asked about whether there was any prima face violation of concession agreement, the JNPT chief said, "We are examining the agreement."

Earlier, GMB had sent a show-cause notice to P&O Ports for not informing the change in management following the acquisition by Dubai Ports. P&O Ports had signed an agreement with GMB for operating Mundra International Container Terminal (MICT) at Mundra, Gujarat.

When contacted, highly placed sources at P&O Ports told Business Standard that the management control is still with P&O Ports and there is no violation of agreement.

"Nothing has changed now. Even in the course of gradual transfer of powers to Dubai Ports, there will not be any violation, or monopolistic practices will not be followed," he said.

Significantly, Dubai Ports had agreed to give back its operations at six US ports, bagged as part of a P&O Ports acquisition, to an American entity following strong opposition in that country.