Corporatisation to bring in competition; 17 pvt port projects cleared till date

Our Infrastructure Bureau

New Delhi, June 11: The government has so far approved 17 private sector port projects amounting to an investment of about Rs 4,526.5 crore and capacity addition of about 60.05 million tonne. These projects are under different stages of implementation.

According to an official press release, one of the key factors for introducing private sector participation in the development of major ports is to bring in competition in port services. Following the issue of guidelines for the formation of joint ventures by major ports with foreign ports, minor ports and private operators in June 1998, necessary amendments to the Major Port Trusts Act, 1963, have been effected and enforced.

The government has also decided to initiate the process of phased corporatisation of major ports to enable
them to operate in a market-oriented economy with adequate flexibility of commercial operation.

The release said this decision was also inspired by the fact that a number of provisions of the Major Port Trusts Act do not allow operation of services by the port on commercial lines. Government approval is required in a number of cases.

Steps have also been initiated for corporatisation of Jawaharlal Nehru Port in Navi Mumbai, New Mangalore Port, Mormugao Port and Tuticorin Port.

The government has also planned to develop a hub port each on the east and west coasts. There is Chennai on the east and the Jawaharlal Nehru Port in the west.

With the globalisation of the Indian economy, creation and upgradation of ports and shipping services of international standards has become inescapable, the release added. The country’s 90 per cent international trade in terms of volume and 77 per cent in terms of value is sea borne.

The release said the Centre has, therefore, decided to aim towards the projected goal of capacity creation of major ports by making them operate on commercial lines.