Shapoorji plans to buy stake in Karaikal port hit a snag

Shapoorji Pallonji’s plans to buy a stake in Karaikal port in Puducherry has hit a bump, reports Mint. The newspaper learns the reason for this stalemate could be because the promoters of the port, Chennai-based MARG Group, don’t want to let go of their management control.

Shapoorji Pallonji has been seeking to buy 51 percent stake in the port.

“As per the original concession agreemen signed between MARG and Government of Puduchery, Marg is required to maintain a minimum of 26 percent stake in the project," said a person on condition of anonymity.

According to the person quoted above, a change in ownership can be implemented only if the current promoter agrees to exit the project through a substitution agreement duly ratified by the Puducherry government but it has become a stumbling block.

The concession agreement between the Puducherry government and MARG was executed in 2006.