Adani Ports scraps plan to develop container terminal in Myanmar
PORTS & SHIPPING

Adani Ports scraps plan to develop container terminal in Myanmar

On Wednesday, India's Adani Ports said it was dropping plans to develop a container terminal in Myanmar, weeks after applying for a US licence for the project, saying it thought it did not violate permissions.

A military coup in Myanmar in February and an ensuing crackdown on mass protests in which hundreds have been killed has brought international condemnation and permissions on military figures and military-controlled entities.

In a statement, Adani said that the firm's risk management committee, after a review of the situation, has chosen to work on a project on exiting the firm's investment in Myanmar comprising exploring any divestment opportunities.

The firm is likely to exit the investment completely in the strife-torn South Asian country between March and June 2022, it said.

In August it had urged the United States' Office of Foreign Assets Control (OFAC) for a licence to run the Myanmar container terminal.

Adani had said in May that it would drop a Myanmar container terminal project and write down the investment if found to be in breach of U.S. sanctions.

The firm had invested $127 million, involving a $90 million upfront payment for leasing land, it said in May, adding a write-down would not have a material influence since the project accounts for only around 1.3% of the firm's total assets.

Last year, Adani won the proposal to develop and run Yangon International Terminal, which it said is an independent project wholly owned and generated by the firm.

A March report issued by two rights groups indicated documents purporting to reveal that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled conglomerates under US sanctions.

Image Source


Also read: APM Terminals to partner with Wan Hai Lines for container terminal bid

On Wednesday, India's Adani Ports said it was dropping plans to develop a container terminal in Myanmar, weeks after applying for a US licence for the project, saying it thought it did not violate permissions. A military coup in Myanmar in February and an ensuing crackdown on mass protests in which hundreds have been killed has brought international condemnation and permissions on military figures and military-controlled entities. In a statement, Adani said that the firm's risk management committee, after a review of the situation, has chosen to work on a project on exiting the firm's investment in Myanmar comprising exploring any divestment opportunities. The firm is likely to exit the investment completely in the strife-torn South Asian country between March and June 2022, it said. In August it had urged the United States' Office of Foreign Assets Control (OFAC) for a licence to run the Myanmar container terminal. Adani had said in May that it would drop a Myanmar container terminal project and write down the investment if found to be in breach of U.S. sanctions. The firm had invested $127 million, involving a $90 million upfront payment for leasing land, it said in May, adding a write-down would not have a material influence since the project accounts for only around 1.3% of the firm's total assets. Last year, Adani won the proposal to develop and run Yangon International Terminal, which it said is an independent project wholly owned and generated by the firm. A March report issued by two rights groups indicated documents purporting to reveal that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled conglomerates under US sanctions. Image SourceAlso read: APM Terminals to partner with Wan Hai Lines for container terminal bid

Next Story
Infrastructure Urban

Paras Defence Subsidiary Wins Rs 460 Mn Anti-Drone Order

Paras Defence and Space Technologies (PDST) saw its shares rise 1.5 per cent to Rs 701 after its subsidiary, Paras Anti-Drone Technologies, secured a defence contract from the Ministry of Defence, Government of India, valued at approximately Rs 460.19 million.The order covers the supply of Anti-Drone Systems, including Drone Jammers, marking a significant milestone for Paras Anti-Drone in India’s growing counter-UAV segment. The contract is scheduled for execution by March 2026. According to official filings, the award is from a domestic entity, not a related party transaction, and no promot..

Next Story
Building Material

Jindal Stainless Launches First Stainless Steel Fabrication Unit in Mumbai

Jindal Stainless, India’s largest stainless steel manufacturer, through its subsidiary Jindal Stainless Steelway (JSSL), has inaugurated its first stainless steel fabrication unit at Washivali, Patalganga, Mumbai. The 4 lakh sq ft facility is designed to serve the bridge sector, fabricating critical components such as girders, arches, nuts, bolts, and handles. The unit was inaugurated by CEO & CFO Tarun Khulbe in the presence of senior leadership.Developed with an initial investment of Rs 1.25 billion, the facility strengthens Jindal Stainless’ position as a provider of end-to-end fabr..

Next Story
Infrastructure Energy

Hero Future Energies Secures Rs 19.08 Bn for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19,080 million in funding from State Bank of India (lead) and Canara Bank for the development of its 120 MW renewable energy (RE) hybrid project in Kurnool, Andhra Pradesh.The project, contracted with SJVN, integrates wind, solar, and storage technologies to provide reliable peak power. The funding, structured with a 21-year repayment tenure, will support timely project execution and the commencement of commercial operations.This financial closure underscores the banking community’s confidence in ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?