 "Nitin Gadkari")
In the wake of stiff resistance from trade unions and political parties, the ministry of shipping has decided to strengthen the existing law to improve efficiency and functioning of major ports instead of corporatisation, as proposed by Union Finance Minister Arun Jaitley in the Union Budget 2015.
"The port corporatisation plan has faced resistance from trade unions, political parties, especially who are against development, so we have decided not to go for corporatisation, rather we will go for modernisation. Attempts are being made to find alternatives to upgrade ports," said Nitin Gadkari, Union minister of road, transport, highways and shipping, addressing reporters here.
"We had appointed a committee to draft a report on the changes required on administration and policy front to makeover the existing ports. The committee will also suggest us the best practices to be followed to increased efficiency. Based on their recommendation, we will approach the Cabinet for its approval," he added.
"We are planning to give more powers to the chairman of the ports so that decision making process becomes faster. This will result in faster implementation of the project," he said.
The 12 major ports are spending more than Rs 15,000 crore every year towards modernisation, mechanisation and increasing capacity and efficiency. The ministry is expecting that by executing all the projects, the operating profit of the major ports is likely to touch 38-40 per cent by FY18, compared to 33 per cent in FY15.
On being asked whether dropping of the corporatisation plan might affect the foreign direct investment inflow, Gadkari said, "Already, world's best firms are working with us and executing certain infrastructure projects at the ports, so I don't feel that it would affect in attracting FDI. "
In the Budget 2015, Jaitley had announced that the government intends to corporatise ports. Ports need to attract investments as well as leverage the huge land resource lying unused with them and to enable the government to do so, ports in the public sector will be encouraged to corporatise and become companies under the Company's Act, the finance minister had said.
Of the 12 government ports, except Kamarajar Port at Ennore, all the others are run by a board of trustees. Kamarajar Port, set up as a company, is managed by a board of directors.
