India bans HK from port investment

The Indian government has put in place a blanket ban on all companies from Hong Kong, China, Dubai and Pakistan from investing in any further port infrastructure projects in the country, the Economic Times reports.

According to government reports cited in the Economic Times this will extend to all facilities including cargo handling, ground handling and other services.

Security threats to Indian naval bases were a factor in the government's decision.

Many of the ports are next to naval bases, and the government fears it is possible for foreign companies to gather vital information on their activities.

This country-specific ban is set to impact investment plans of major port development companies, including DP World and Hutchinson.

As a result, the ports and shipping ministry is set to reopen bids on at least 10 port projects that previously had foreign interest from these sectors.

There are currently around 250 ports being developed on a public-private partnership model in the country.