The government is trying to give a legal backing to its efforts to convert major port trusts into companies, following continuous labour opposition to its proposal to corporatise Jawaharlal Nehru Port Trust (JNPT).

India has 13 major ports, 12 of which are managed by trusts. Only Ennore Port is a corporate entity. The government wants to hand over the management of all major ports in the country to corporate boards after converting the trusts into companies under the Companies Act, 1956. JNPT, which is the third-largest Indian port in traffic volume, stands at the top in the priority list for corporatisation.

The Centre has come out with a draft Bill that gives it the right to divest ownership and control of major ports in the country.

?It shall be open to the central government at its discretion with effect from such dates as notified in the official gazette, from time to time, to divest ownership, control and management of a major port from the board of trustees and vest in a company, whether in a government company or a public limited company,? the draft states.

According to the Bill, called the Indian Ports Bill, 2011, the government would also decide the constitution of the management and shareholding of the company created after conversion of a trust. The draft Bill has been released by the shipping ministry seeking comments from stakeholders by August 21.

The Bill has been drafted after integrating two existing Acts for the port sector ? Indian Ports Act, 1908, and Major Ports Act, 1963. It has been framed to avoid any duplication of provisions in the existing Acts. The government has been trying to convert JNPT into a company with an independent board since 2007, but the proposal is facing fierce opposition from workers. The ministry now wants to corporatise it by the end of this year.

After JNPT, Haldia Dock Complex will be taken up for corporatisation. Corporatisation will allow ports to have an independent board to take financial and management decisions like raising money from the open market. Currently, all major ports, barring Ennore Port, have to approach the government for every decision. Ennore Port was registered as company in 2001.