The ban, which has been imposed due to security concerns, means that India’s ports and shipping ministry will have to reopen bids for at least 10 port projects. It also appears to place DP World’s investment plans across the subcontinent in jeopardy. The company has invested about $3.5bn in the emerging markets of India and China.
The Dubai-based ports operator says its existing work in Chennai, Kochi, Nava Sheva and Visakhapatnam is unaffected. However, it remains to be seen if the Indian government will relent in time after what it says are security threats against Indian naval bases.
DP World was recently excluded from the shortlist to build a container terminal at Ennore Port. Although no reason has been given, Ennore is close to an Indian naval facility.