Adani Ports and Special Economic Zones Ltd said on Tuesday it would abandon the Myanmar container terminal project and could write off investments if it appeared to be in violation of sanctions imposed by the United States.
“In cases where Myanmar is classified as a recognized country under the Foreign Assets Control (OF FAC), or if the OFAC says the project violates existing sanctions, the APSEZ plans to abandon the project and write off the investments.” The exchanges said in a filing on Tuesday.
Adani Ports added that the write-down will not have a physical impact on APSEZ, as it accounts for about 1.3 per cent of total assets.
The company, meanwhile, said it was in discussions with US-based consultant Morrison Forster to ensure compliance with AC FAC sanctions.
In May, Adani Ports announced its intention to set up a container terminal at Yangon, Myanmar, and signed a lease agreement with a democratically elected government. Adani Ports said પ્રોજેક્ટ 127 million has been invested in the project, which will provide employment to 300-350 people.
In a separate development, the net profit of Adani Ports and Special Economic Zones (APSEZ) nearly quadrupled from Rs 4,334 crore in the same quarter last year to Rs. 1,287 crore.
Adani Ports handled the highest container volume of 7.2 million twenty-foot equivalent units (TEUs) during the year, gaining a market share of 5 per cent, up 1 per cent. Mundra Port is India’s largest container handling port and handles 5.66 million TEUs which is about one million TEUs more than JNPT.
“We are grateful for our strategy of partnering with top global ship liners and acquiring Strategic Ennore and Krishnapatnam ports,” Adani Barts said in a press release.