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Whampoa port deal in India blocked for security
Hong Kong, May 22: Hong Kong conglomerate Hutchison Whampoa`s bid to gain its first foothold in port development in India has been blocked by authorities there due to security concerns, a press report said today.
Hong Kong, May 22: Hong Kong conglomerate Hutchison Whampoa's bid to gain its first foothold in port development in India has been blocked by authorities there due to security concerns, a press report said today.
India's defense ministry has disqualified bid by Hutchison Whampoa's subsidiary, Hutchison Port Holdings, in a joint venture tender for the proposed Rs nine-billion (192 million US dollar) Nhava Sheva container terminal near Mumbai, for security reason, said the report.
"The proposed terminal is in close proximity to the strategically located Southern Naval Command and the involvement of foreign firms with Chinese or Pakistani connections in the project could have serious security implications," said the newspaper, citing Indian defense ministry's Committee of Secretaries responsible for internal security.
Eleven other bidders, including Singapore's PSA Corp., Malaysia's Westport Holdings and local operator CSX World Terminals, are understood to have passed security clearance to tender for Mumbai's third container terminal.
Hutchison Whampoa, controlled by tycoon Li Ka-Shing, has often met political obstacles in the pursuit of business. Earlier this month, it dropped its bid for bankrupt us telecom group global crossing reportedly amid concerns among US lawmakers about the company's ties to the Chinese government.
Hutchison Port operates 31 ports in 15 countries.
Bureau Report
"The proposed terminal is in close proximity to the strategically located Southern Naval Command and the involvement of foreign firms with Chinese or Pakistani connections in the project could have serious security implications," said the newspaper, citing Indian defense ministry's Committee of Secretaries responsible for internal security.
Eleven other bidders, including Singapore's PSA Corp., Malaysia's Westport Holdings and local operator CSX World Terminals, are understood to have passed security clearance to tender for Mumbai's third container terminal.
Hutchison Whampoa, controlled by tycoon Li Ka-Shing, has often met political obstacles in the pursuit of business. Earlier this month, it dropped its bid for bankrupt us telecom group global crossing reportedly amid concerns among US lawmakers about the company's ties to the Chinese government.
Hutchison Port operates 31 ports in 15 countries.
Bureau Report