Shares of infrastructure players Adani Port & SEZ (APSEZ), Lanco Infratech and Punj Lloyd slumped in Monday?s trade on reports that the Union home ministry has denied security clearance to these companies for participating in two key port projects. While APSEZ and Punj Lloyd both lost about 3.8% to close at R108.1 and R47.5, respectively, Lanco lost 5.5% to end the session at R11.13.
The stocks opened in red and fell as low as 4-6%in Monday’s intra-day trade, reacting to news reports that home ministry had forbidden these companies from participating in two major port projects, citing security concerns.
While APSEZ and Punj Lloyd were denied security approval for the coal import terminal at Mormugao port in Goa, Lanco Infratech was denied permission for cargo birth facility at Tuticorin port in Tamil Nadu.
Generally, companies that are interested in building a port or an import terminal are required to seek security clearance from home, defence and external affairs ministries. It is believed that in the last five years, the home ministry has denied four clearance to APSEZs on security grounds.
?Reports that APSEZ has been denied security clearance at all major government-owned ports may not be true. While it currently does not operate at any of the government-owned ports, the company is likely to start projects at two of such ports in the next three fiscal years,? said an analyst.
These, according to him, include a coal-handling project at Mormugao port with a capacity of 12 mt, which is likely to get operational by 2013-14. Another bulk-handling project with 15-mt capacity is expected to be operational at Kandla port within next two years.
APSEZ runs facilities at the Mundra and Hazira ports in Gujarat and at Abbot Point in Australia.
