Govt for port modernisation, dilutes stand on corporatisation

With Centre's ambitious plan to corporatise country's 12 major ports facing continued resistance from trade unions, the government today softened its stand saying it will give more power to the port chairman and board to increase profitability.
The government had earlier planned to create a separate entity for efficient governance by chairman and the board of state-run ports in the country.
Shipping Minister Nitin Gadkari today said the government is going ahead with the port modernisation programme and his ministry will seek Cabinet nod on the same as it tries to tackle the opposition to corporatisation of ports.
"We will give more power to port chairman and board and by which I feel that we will achieve corporatisation," Gadkari said addressing the media here.

"We have already received a report from expert committee by which we can change existing law to implement modernisation of ports, increase their efficiency and to make our decision making process fast.
The minister added that the report from the expert committee is ready and they will approach the Cabinet for vetting.

When asked if the government had dropped its earlier plan of corporatisation the ports, he countered: "We are going to submit it to the Cabinet. After approval we will implement. Corporatisation is not ruled out (and) it is to be declared by the Finance Minister. It is on the agenda."

He said there is a stiff resistance from trade unions and some political parties so the government is amending the Major Ports Act but it would be ensured that the interest of workers is not compromised.
During the Budget for this fiscal, Finance Minister Arun Jaitley had said the government will encourage the 12 major ports run by the government to get corporatised.
India has 12 major ports -- Kandla, Mumbai, JNPT, Marmugao, New Managlore, Cochin, Chennai, Ennore, VO Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) -- which handle approximately 61 per cent of cargo traffic.