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The Union Government has proposed to reconstitute the boards of trustees of all Major Ports.
The move assumes significance as it comes after last week’s decision to terminate the advisory councils at all government ports constituted during the UPA regime.
The Ministry of Shipping last week sent notices to all ports stating that the existing advisory councils would be terminated. These councils have representatives from trade associations, private terminal operators and experts.
According to officials, the plan to recast the Major Ports’ boards is mainly aimed at granting board representation to the Ministry of Environment and Forests as port projects require environment clearance.
However, port officials except the government move to bring about significant changes in the process of selection of board of trustees.
Of the 12 Major Ports, except Ennore (which is incorporated as a company) all others are managed by board of trustees.
These boards comprise 20-21 members, which besides chairmen and deputy chairmen include representatives of trade bodies, Customs, defence, coastguard and the so-called “other interests.”
Almost all boards have five members each who are political nominees and are said to represent other interests.
The boards are normally reconstituted every two years. The boards of seven ports were due for reconstitution as on April 1, 2014.
Though these boards were yet to be fully reconstituted, the UPA government appointed their ‘other interests’ nominees on these boards ahead of the election code of conduct in March, said a port official.
UPA nominessIf the buzz in the port circles is anything to go by, all these political nominees of UPA could be dropped.
According to port sector analysts, boards of major ports, constituted as per the provisions under the Major Port Trusts Act, often lacks professional expertise.
The boards are headed by bureaucrats normally appointed for two-three years. They normally lack experience in the sector and depend on advice from other members who are interested parties. The best way to resolve this issue is to corporatise all ports, they said.
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