Adani Ports and Special Economic Zone Ltd (APSEZ) on Wednesday said it has decided to exit its investment in Myanmar by June next year.
APSEZ, the largest port developer in India, is part of the globally diversified Adani Group.
"The Board has decided to actively work on a plan on exiting Company's investment in Myanmar including divestment opportunities (expected to be concluded by March - June 2022)," APSEZ said in notes to its second quarter results.
In August this year, APSEZ had said its investment in a port in Myanmar was not in violation of any sanction guidelines issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury.
"APSEZ believes that it is not in violation of any sanction guidelines issued by OFAC, and has, therefore, applied to OFAC for a general license to operate the Port," it had said.
The project had run into controversy after it was reported that APSEZ chief executive Karan Adani had in July 2019 met Senior General Min Aung Hlaing, the army chief who led a coup against the elected government.
The Adani Group had previously said it had won the Yangon International Terminal project last year through a global competitive bid.
The project requires $290 million investment.
The land acquisition for the project was facilitated by "the Myanmar Investment Commission led by U Thaung Tun, its chairman and Minister of Investment and Foreign Economic Relations under the guidance of President Aung San Suu Kyi's National League for Democracy government," it had previously said.
Photograph: Amit Dave/Reuters