The Hindu Business Line : Convert port trusts into public-listed cos

The port trusts should be converted into public-listed companies (minus the excess land) with the general public holding at least 49 per cent of the shares, the Economic Survey 2008-09 has said. This is one of the steps suggested in the survey to improve the investment environment and driving growth.

For this to happen, the major port trusts, which are under the Centre’s jurisdiction, have to be corporatised first. Currently, only Ennore port is a corporate entity—Ennore Port Ltd and has been conferred the Mini Ratna status recently.

The 12 major port trusts handle 530.35 million tonnes (mt) of traffic in 2008-09, about three-fourths of total traffic handled in the country.

Corporatisation

Earlier, many Shipping Ministry committees have recommended corporatisation of port trusts in a phased manner to let the ports have benefits in decision making and operational efficiency. But, not much has happened given the opposition on the ground from workers unions and the political climate.

A committee of experts constituted by the Ministry based on experience of Ennore Port Ltd, had suggested corporatisation of JNPT and Haldia Dock complex since these two ports do not have much ‘legacy issues’.

In 2001, to enable corporatisation of existing major port trusts, the Major Port Trusts (Amendment) Bill was introduced. The Bill, referred to the Parliamentary Standing Committee, lapsed with dissolution of Lok Sabha in 2004.

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