Centre moves towards corporatisation of Major Ports

The Major Port Authorities Bill, which seeks to provide significant operational autonomy to the Major Ports, will allow the 12 state-run entities to work like a corporate with full flexibility, says a research report. Terming the proposed law as a significantly positive step for the state-run ports, domestic rating agency ICRA in a report said, “The Union Shipping Ministry aims to enable the port authorities to function like a corporate entity and provide autonomy and flexibility to operate, besides bringing in a professional approach in their governance.”

K Ravichandran, Senior Vice-President at ICRA, said the move will give autonomy to ports in raising loans without government approvals, which is a potential positive, as in the past, some Major Ports have struggled to implement expansion plans because of lack of funds. Approval by the Cabinet for the Bill is credit positive for the 12 major ports, Ravichandran said.