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Adani’s grip on MPT suffers a setback

Home ministry denies security clearance for operation at MPT’s berth no. 11

Adani’s grip on MPT suffers a setback

Even as the Union shipping ministry is eying large scaleexpansion and increase in capacity at various ports in the country, denial ofsecurity clearances to some major players like Adani port is likely to affectsome port projects.

Adani Port received a setback after they were deniedsecurity clearance by the union home ministry along with two other companies,who had bid for operation at berth number 11 at Mormugao port.

However, Adani Mormugao Port Terminal Limited is likely tostart its coal handling operation at their new berth number 7 at Mormugao portwith all security clearances.

10 other bidders got all clearances and would now be allowedto operate at berth number 11.

According to existing norms, companies have to get securityclearance from the ministries of home, defence and external affairs beforebuilding a port or an import terminal.

“Out of 13 bidders only 10 had got there security clearancesfrom union home ministry. The other three including Adani Mormugao PortTerminal Limited was denied security clearance and thus their bid to operate atberth number 11 at MPT stands rejected,” said MPT Chairman, P Mara Pandiyan.

Pandiyan further said that as the Adani’s project at berthnumber 7 has security clearances the project would continue without anyobstacles.

“We are not aware that the ministry of home affairs hasdenied national security clearance to Adani to participate in the terminaldevelopment projects in Mormugao Port,” Rajeeva Sinha, director, Adani Portssaid while speaking to a national daily.

We would think the company should get national securityclearance in normal course, which even foreign companies operating in India areallowed, Sinha added.

The coal import terminal project at Mormugao is estimated tocost Rs 425 crore and will have a capacity of 4 million tonnes per annum.

The national daily informed that as per existing normscompanies have to get security clearance from the ministries of home, defenceand external affairs before building a port or an import terminal. The processcan stretch over many months and delay the projects. Sometimes, denial ofpermission on security grounds can disqualify bidders, like in the case ofAdani.

The shipping ministry, which is racing against time tocomplete 27 port projects worth over Rs 17,000 crore this fiscal, wants thefinal authority for all clearances to vest with it, the national daily said.

 At a meeting of acommittee of secretaries in February this year, the ministry requested that itshould be allowed to take a final call after receiving inputs from the threeministries and intelligence agencies, the then shipping secretary K Mohandashad told the national daily.

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