Gangavaram Port: Dubai Ports Out, Malaysia's Integrax In
Mon, 04/17/2006 - 16:30 — Sahad P V
It's not a good time to be Dubai Ports International. The company has lost out from the race to be a partner in the Rs 1,700 crore Gangavaram Port Ltd in Andhra Pradesh. Integrax Berhad of Malaysia has joined the port project as "technical partner", picking up 20 per cent equity in the consortium led by D.V.S. Raju.
According to Business Standard, the reason, however, is not related to security. The Malaysian company was ready to enter the port with 20 per cent equity while Dubai Ports demanded a stake not less than 26 per cent.
The port is expected to be operational by December 2007. Raju, his family and friends, owned 51 per cent, while the State Government held 11 per cent. "A well-known US international fund holds the remaining stake," Raju said in a press conference. [Via The Hindu Business Line]
