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India Ports Global Chabahar Free Zone

IPGCFZ is subsidiary wholly owned by India Ports Global Limited, Mumbai, under the administrative control of Ministry of Shipping (Government of India).

NEW DELHI: The government on Wednesday approved the exemption of India Ports Global Ltd from the Department of Public Enterprises (DPE) guidelines for smooth execution of Chabahar Port project.

The approval was given during a Union Cabinet meeting chaired by Prime Minister Narendra Modi.

“The Union Cabinet…has approved the exemption of the India Ports Global Ltd (IPGL) from the DPE Guidelines, except reservation and vigilance policies,” the shipping ministry said in a statement.

IPGL was incorporated as a special purpose vehicle jointly promoted by Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (DPT) for development and management of Shahid Behesthi Port of Chabahar in Iran.

Subsequent to the withdrawal of the US from the Joint Comprehensive Plan of Action, the external affairs ministry advised the shipping ministry on October 29, 2018 to exclude JNPT and DPT from possible impact of US sanctions.

“Based on this and with the approval of empowered Committee all the shares of JNPT & DPT were purchased by ‘Sagarmala Development Company Ltd’ (SDCL) on December 17, 2018,” it said. 

SDCL is a central public sector enterprise (CPSE) and therefore IPGL being a subsidiary of SDCL has also become a CPSE.

As a result, guidelines of DPE are technically applicable on IPGL.

Since Chabahar Port is the country’s first overseas port project with strategic objectives, there is an urgent need to allow IPGL to continue to function as a board managed company, duly following the instructions of the shipping as well as external affairs ministries without making the guidelines of DPE applicable to it for a period of five years, the statement said.

Accordingly, the shipping ministry has requested exemptions to IPGL from the applicability of the DPE guidelines, for smooth execution of the project.

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Mr. Arun Kumar Gupta

Chairman of the board

Mr. Arvind Chaudhary

Deputy of Chairman

Mr. Hossein Habibollahi

Managing Director