Decision to induct DP World Director in Paradip Port Board

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Press Trust of India New Delhi
Last Updated : Jul 08 2015 | 9:42 PM IST
Terming a decision by Shipping Ministry to induct a senior official from global port operator DP World in Paradip Port Trust as "shocking" and a case of conflict of interest, senior CITU leader and MP Tapan Sen today said it would sabotage the interest of the major port.
"It is shocking to learn that Ministry of Shipping has decided to induct the Director of DP World, Kelvin JD Souza in the Board of Trustees of the Paradip Port Trust vide its communication dated March 13, 2015," Sen said in a letter to Road Transport and Highways Minister Nitin Gadkari.
A Ministry official, however, said the central government only nominates the organisations in this category and not the particular individual to represent the nominated organisation.
Paradip Port Trust is one of the 12 major ports in the country, owned by the Centre.
"The DP World is one of the major port operators in our country, in fact a business rival to all the major ports under the Ministry of Shipping... You will appreciate, this is a clear case of 'conflict of interests' as well and also militates against basic rationale of any decision-making," Sen said, urging the Minister to immediately recall the order.
He said the decision was not only against efficient and productive functioning of the Paradip Port Trust but might have a "sabotaging impact" on its working as the Director of the competing entity will have access to and a say on the business and operational plan/decision of the Port.
In the meeting of the Board of Trustees of Paradip Port, the Trustee from the employees side and a few other members vehemently opposed the above decision on valid grounds, the letter said.
"I am not arguing here on the issue of giving private and foreign companies a greater space in the port management and operation in the country or corporatisation and privatisation of major ports," Sen said, adding that this may be debated separately.
"But consciously positioning the official of a competing entity to the crucial decision-making agency of the government run port is a clear violation of the basic rules of the game which is beyond the mandate of the Ministry of Shipping or in that matter the Government of India as such," the letter said.
He urged Gakari to seriously reconsider and reverse the said decision of induction DP World official in Paradip Port's Trustee Board in the interest of fairness and propriety.
Sen, besides being Rajya Sabha MP is member of Standing Committee on Labour besides Consultative Committee for Ministry of Steel and Member, Committee on Public Undertakings.
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First Published: Jul 08 2015 | 9:42 PM IST

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