Govt allows Dubai port firm DP World to form Indian holding company
The Government on Thursday allowed Dubai-based port operator DP World to create an Indian holding company by change in shareholding in the Container Terminal Projects at major ports, provided the net worth of the latter is higher than $80 million. “The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for grant of ‘no objection’ to the proposed change in shareholding in the Container Terminal Projects of Dubai Port World (DPW) Limited in major Ports,” the Ministry of Shipping said in a statement.
“The government has agreed to the proposal for restructuring by DPW subject to the condition that the net worth of the holding company Hindustan Ports Private Limited (HPPL) after acquisition of the shares of the project SPVs shall be higher than $80 million,” it said.
The move allows for the creation of an Indian holding company of global operator DPW with unique asset portfolio to operate and manage the terminal operations at the existing major ports subject to certain safeguards.
DPW Ltd 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 HPPL.