The Hindu Business Line : Govt issues norms for trustees' posting in ports

FOR the first time, the Government has issued clear-cut guidelines for the appointment of trustees under the category of `other interests' for the 12 major ports in the country.

It has also listed the names of body/associations who could nominate a representative on the Board of Trustees under `other category'.

Besides, no person would be eligible for appointment as a Trustee if he has already been on the Board of the same major port trust twice or on the Board of any major port trusts for three terms.

"In other words, a person cannot be on the Board of a particular major port trust for more than two terms of two years each and the maximum number of times he could be on the Board of any major port trust should be restricted to three," says a circular issued by the Shipping Ministry on February 19 to all the major port trusts.

According to the circular, a person who could be appointed as a trustee under the category of `other interests' must at least be a graduate with expertise in any one of the following fields - financial management/financial institutions, practising advocates specialising in taxation and maritime laws, general administration, project and contract management, export and import, logistics management, reputed academic institutions and eminent personalities/professionals.

Such a person could also be an official attached to the Ministries of Commerce, Law or any other user Ministry of the Government, the circular said.

The list of body/associations who could nominate a representative on the Board of Trustees under `other category' includes national level industry associations such as CII, FICCI, Assocham, regional industry associations which are registered for more than 5 years, national body of exporters/importers like FIEO and miners such as FIMI as well as associations of stevedores, steamer agents, shipping agents and customs houses.

Section 3 of the MPT Act, 1963 relating to the constitution of Board of Trustees of major port trusts prescribes a ceiling of 19 members for the ports of Mumbai, Kolkata and Chennai and 17 in the case of JNPT, Kandla, Cochin, Tuticorin, Visakhapatnam, New Mangalore, Mormugao, Haldia and Paradip. The ceiling excludes the chairman and the deputy chairmen of the respective port trusts.

Out of the two categories from which representatives had to be appointed on the Board of Trustees, the first category relates to `other interests' where the Central Government appoints the person by name. Under the second category, the Central Government chooses the body/associations and thereafter, it is that body/associations which nominates a representative on the Board of Trustees.

With the MPT Act silent on the definition of persons who could be appointed under `other interests', successive Governments and transport/shipping ministers had utilised the loophole to pack this category with people belonging to their respective political parties or to accommodate their loyalists.

"This flexibility/discretion in the appointment of Trustees under `other interests' will not be available henceforth to the Government/Ministers. It will have to be done strictly in line with the guidelines issued by the Ministry for such appointments. To that extent the Minister's powers has been curtailed," a Shipping Ministry official said.

However, observers say that the eligibility criteria laid down by the Ministry still had flaws (for instance, eminent personalities/professionals, general administration, project and contract management and reputed academic institutions) that could come in handy for the Ministers to chose their favourites for appointment as `other interests'.