The move, if accepted by the OECD, will be a blow to P&O, as the company has in recent times been acknowledged as an ecologically friendly corporation.P&O Ports has proposed a nine berth, $950 million port at Wadhawan, an area which falls under a protected green zone. However, legal opinion is split over whether a port can be legally constructed on the site.

The WWF, UK has provided funding support to three socio-economic surveys being carried out in Wadhavan and surrounding villages, locations most likely to be affected by the port project. The results are expected to be published within a couple of weeks.

The MAI is an international treaty, drafted by the OECD, to be ratified by developing countries, which aims at increasing economic growth by making international investment more attractive to multinational corporations.

Under the agreement, multinationals will have greater legal protection against discrimination by local governments. Due to be signed earlier this year, it was delayed as some issues remained unresolved.

The WWF has asked for several amendments to the treaty, as they claim that the MAI in its present form undermines national and international environmental laws. There are fears that in intense competition to get a slice of global investment, developing countries might actually agree to lower or dilute environmental standards to accommodate multinational corporations setting up huge projects. The WWF has pointed out through various representations made to the OECD that this is what is happening at Wadhawan.

According to a document issued by WWF, the MAI gives multinationals new legal power to exploit the environment, but has no new legal obligation. In fact, the NGO's and the WWF had earlier suggested that the MAI include a `no lowering of standards clause.' While this has been accepted by the MAI, the clause can be applied only to specific projects and not as a general rule.