The government will soon convert Jawahar Lal Nehru Port Trust (JNPT), a major port, into a public sector undertaking. The move is part of a plan to corporatise all major ports of the country with an intention to give them more autonomy in decision making.
?Corporatisation of major ports will start with JNPT. Others will follow. The process is on and the decision is expected soon,? shipping secretary K Mohandas told reporters at a conference organised by Standing Conference of Public Enterprises. The Financial Express had reported in March that JNPT would be corporatised in 2010-11 and the ministry would initiate the process for corporatising at least two more ports this year.
At present, Ennore Port is the only corporate port?it was corporatised in 2001. Rest of the 12 major ports are administered by trusts under the Major Port Trusts Act 1963 (MPTA).
MPTA imposes restrictions on fixing of tariff by the trusts. As per the Act, Tariff Authority for Major Ports (TAMP) chalks out the caricature of tariff and trusts have to comply with the same. TAMP norms are considered restrictive and are blamed for higher charges at major ports. Once a port trust is converted into a corporate entity, it will get higher freedom to fix tariff and compete with other ports better. JNPT handled traffic of 61 million tonne during 2009-10, nearly 11% lower than the target of 68 million tonnes.
Mohandas said the domestic shipping industry needs ?protection? to get a level-playing field vis-a-vis foreign competitors. The government is considering a ban on foreign vessel in India?s coastal shipping to facilitate more work for domestic ship and container operators.
?Competition would be an ideal situation but globally there is established practice to regulate domestic shipping and hence protection to Indian domestic shipping industry should be adopted,? he said.
On capacity expansion under National Maritime Development Programme, the secretary said about 25 projects carrying investments of Rs 6,500 crore with a capacity of 145 MTs are at the approval stage. ?Capacity at ports needs to be enhanced by 1,200 MTs by the end of current plan. Lot of investment is needed in this area for creating additional berths, mechanisation and dredging in a big way,? he added.