Infra stocks plunge, report says cos barred from 2 major port projects

Shares in 3 major infrastructure companies -Adani Ports and Special Economic Zone, Lanco Infratech and Punj Lloyd - plunged in morning trade after The Economic Times reported that the home ministry has barred them from participating in two major port projects because of security concerns.

The business newspaper reported that Adani Ports and Punj Lloyd have been denied security clearance for the coal import terminal at Mormugao Port in Goa, while Lanco has been denied permission for the cargo berth facility at Tuticorin Port in Tamil Nadu.

Adani Port is down 2.86 percent. The home minister has previously denied security clearances to Adani for the Vizhinjam Port in Kerala and for the development of the fourth container terminal at JNPT, ET had reported earlier.

Meanwhile, Punj Lloyd is down 1.62 percent while Lanco Infra is also down 2.28 percent.

he news is not likely to impact the valuation of the stocks as these projects are not yet awarded to these firms, an analyst at a domestic brokerage told Reuters, but the news did hit investor sentiment.

Lanco Infratech declined to comment, Punj Lloyd was not immediately available for comment.

Economic Times quoted Rajeeva Sinha, a director at Adani Ports, as saying: “We are not aware that the ministry of home affairs has denied national security clearance to APSEZ to participate in the terminal development projects in Mormugao and Tuticorin Ports.”

With inputs from Reuters