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Cabinet approved the exemption of IPGL from the DPE Guidelines

The Union Cabinet led by PM Narendra Modi approved the exemption of the India Ports Global Ltd (IPGL) from the DPE Guidelines, except reservation and vigilance policies. The approval will help in the smooth execution of the Chabahar project in Iran. Background: IPGL was established under Companies Act 2013, as a Special Purpose Vehicle (SPV). It was jointly promoted by Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (DPT) under Administrative control of the Ministry of Shipping, for the development and management of Shahid Behesthi Port of Chabahar in Iran. As per government’s direction, an Empowered Committee approved the purchase of all the shares of JNPT & DPT by “Sagarmala Development Company Ltd” (SDCL) in December 2018. The move is to exclude JNPT and DPT US sanctions after the US’ withdrawal from the Joint Comprehensive Plan of Action (JCPOA).  After the acquisition, the Guidelines of DPE are technically applicable to IPGL. The Chabahar Port is India’s first overseas port project with strategic objectives. Presently, there is an urgent need to allow IPGL to continue to function as a Board managed company without following the guidelines of DPE for a period of 5 years. IPGL will instead duly follow the instructions of the Ministry of Shipping and Ministry of External Affairs. Ministry of Shipping has requested exemptions to IPGL from the applicability of the DPE guidelines, for the smooth execution of the project.

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