The Hindu Business Line : EC permits revamp of port trust boards

SETTING aside its earlier objections citing the model code of conduct, the Election Commission (EC) has allowed the Ministry of Shipping to reconstitute the Board of Trustees of eight major port trusts including Mumbai and Chennai that have become due on April 1.

While granting permission to revamp the port trust boards following a second submission by the Shipping Ministry in this regard, the EC has, however, made it clear that the approval pertained only to the appointment of official trustees and not for the nomination of trustees representing the politically sensitive category of `other interests', a senior Ministry official said. The appointment of trustees representing `other interests' will have to wait till a new Government is formed at the Centre after the Lok Sabha polls, he stated.

Significantly, the EC was yet to accord clearance to the Ministry for processing the proposal submitted by JNPT to award the contract for the construction of a new container terminal at the port on a build, operate and transfer (BOT) basis to the Maersk-Concor consortium.

The Ministry reckons this delay in granting permission as a clear indication of the Commission's stand that the award of contract by issuing a Letter of Intent (LoI) to the highest bidder could take place only after the poll process is completed. As per Section 3 of the Major Port Trusts Act, 1963, the Government will have to re-constitute the Board of Trustees of the 12 major port trusts every two years.

Accordingly, the Board of Trustees of Kandla, Chennai, Kochi, Mumbai, Kolkata, Paradip, Mormugao and Visakhapatnam port trusts were due for re-constitution on April 1 for a new two-year term till March 31, 2006. The tenure of the earlier Board of Trustees of these port trusts expired on March 31 this year.

Out of these 8 port trusts, the MPT Act prescribes a ceiling of 19 member Board of Trustees for the ports of Mumbai, Kolkata and Chennai and 17 in the case of Kandla, Kochi,Paradip, Mormugao and Visakhapatnam. The ceiling excludes the Chairman and Deputy Chairman of the respective port trusts.

The Board of Trustees of Jawaharlal Nehru, New Mangalore, Tuticorin and Haldia Dock were re-constituted by the Government on April 1, 2003 for a two-year term till March 31, 2005.

The Commission apprehends that the Shipping Minister could utilise the ambiguities in the definition of persons to be appointed as trustees representing `other interests' and induct party workers as trustees under this category, as had happened in the past.

This is despite the fact that the Ministry had issued an order on February 19 to all the major port trusts listing the eligibility criteria/qualification for the appointment of persons as trustees under the `other interests' category to prevent chances of party workers being roped in as trustees by the political establishment.

``We want qualified people to become trustees on the Board,'' the official said. As per the Ministry order, persons who are to be nominated as trustees representing `other interests' should at least be a graduate with expertise in financial management/financial institutions, practising advocates specialising in taxation and maritime laws, general administration, project and contract management, export and import, logistic management, reputed academic institutions and eminent personalities/professionals.