JNPT corporatisation will happen by 2011

The shipping ministry is confident that the corporatisation of the Jawaharlal Nehru Port Trust (JNPT) will take place by 2011 and it may not require any amendment to the Major Port Trust Act, 1963. While the latter could speed up the corporatisation process, the government has asked JNPT to submit a road map on the proposed corporatisation.

“Till now, we have not found any reason to amend the Major Port Trust Act for corporatisation of JNPT,” K Mohandas, secretary, shipping ministry, told Business Standard.

Besides JNPT, the government is also considering corporatisation of New Mangalore and Tuticorin Port Trusts. “These ports are good candidates. However, we first want to try out with JNPT. Depending on how that goes, the future course of action will be decided,” Mohandas said.

The idea of corporatisation, mooted almost a decade ago in 2000, was accompanied by a proposal to amend the Major Port Trust Act, 1963, to grant a legal sanction to corporatise major ports. The amendments are still in draft stage.

“JNPT was notified as a major port under the Major Port Trust Act of 1963. The government has to de-notify the port to further the corporatisation process,” said Mohandas.

When corporatised, the ports would be able to fix their rates like private ports, which are state subjects. But now, the rates of major ports are decided by the Tariff Authority of Major Ports (TAMP). The ports also have to share revenue with the landowner, the government, for a specified period. Industry experts feel the move will bring in more transparency and give the ports more flexibility to function.

“Major Ports Trust Act is dated. Corporatisation will help the ports function as a business entity. Decision will be made keeping in mind the business rationale,” said Vishwas Udgirkar, executive director, Pricewaterhouse Coopers.

The move has created a lot of scepticism among port workers. They see it as the first step towards privatisation.

Demanding that the proposal be scrapped, port workers took out rallies in Kochi, Chennai, Tuticorin, Kolkata, Paradip and Mumbai on July 28.

Mohandas said that the government would hold talks with workers at JNPT to allay their fears. Meanwhile, port workers are planning another nationwide strike. A convention planned this month will chalk out the action plan. “If the government carries out its intention of turning us into a corporation, then we would go on indefinite strike,’’ said Bhushan Patel, labour trustee in the board of JNPT, which is now the nucleus of the unrest.

Worker unions said when the government tried to amend the Act in 2003, the draft Bill had no slot for labour representatives on the boards of the corporations. Now, the board of trustees in a port trust has two representatives from workers.

Workers are also grumbling about the non-implementation of the RK Jain Committee recommendations and the non-realisation of the full autonomy as envisaged in the Major Port Trusts Act.

Patel said, “Today, the JNPT has a reserve fund of Rs 3,000 crore, but if it wants to modernise or increase its depth to 15 meters to enable bigger vessels to harbor, it needs the approval of the ministry.”