The proposal to amend Major Ports Act, 1963, to corporatise major ports, has generated heat with the BOT operators welcoming the initiative and the trade unions planning direct action against it.
Though the initiative is nothing new, the Bill drafted by the NDA government during its earlier stint at the Centre could not get passage in Parliament for want of required support. Now with absolutely majority on its own, the BJP-led NDA coalition is keen on giving a big push to its plan to convert all 12 public sector ports, including Visakhapatnam under the Companies Act, 1956.
Kamarajar (erstwhile name Ennore) is India’s first major port registered under the Companies’ Act as Kamarajar Port Limited. Once the major ports become a company, they will become landlord ports – collecting royalty from BOT operators. “The government is keen on improving the efficiency of major ports as they have to face competition by offering cost-effective cargo handling,” Visakhapatnam Port Chairman M.T. Krishna Babu has told The Hindu .
Major ports are now facing stiff competition from non-major ports, which are under private management and free from regulator regime. The 12 major ports are lagging in achieving Ministry of Shipping’s target of 604.45 million tonne set for current fiscal whereas non-major ports are doing exceedingly well due to apparent reasons.
“Corporatisation is a bold initiative to ensure more efficiency and a level-playing field,” says Vizag General Cargo Berth Pvt. Ltd CEO D.K. Manral.
Trade union leaders say the decision is not new. Already the process has been started. For instance, in Visakhapatnam Port itself, mechanisation work is going on at a cost of Rs.13,000 crore, most of it in BOT mode.
“Their main intention is to prune the staff size drastically and convert everyone into contract/outsourced workers,” says senior AITUC leader and trustee of Visakhapatnam Port V.V. Rama Rao.
Representatives from all the central trade unions have decided to go on an indefinite strike to oppose corporatisation.
The government is keen on improving the efficiency of major ports
M.T. Krishna Babu
Chairman of VPT
Though the initiative is nothing new, the Bill drafted by the NDA government during its earlier stint at the Centre could not get passage in Parliament for want of required support. Now with absolutely majority on its own, the BJP-led NDA coalition is keen on giving a big push to its plan to convert all 12 public sector ports, including Visakhapatnam under the Companies Act, 1956.
Kamarajar (erstwhile name Ennore) is India’s first major port registered under the Companies’ Act as Kamarajar Port Limited. Once the major ports become a company, they will become landlord ports – collecting royalty from BOT operators. “The government is keen on improving the efficiency of major ports as they have to face competition by offering cost-effective cargo handling,” Visakhapatnam Port Chairman M.T. Krishna Babu has told The Hindu .
Major ports are now facing stiff competition from non-major ports, which are under private management and free from regulator regime. The 12 major ports are lagging in achieving Ministry of Shipping’s target of 604.45 million tonne set for current fiscal whereas non-major ports are doing exceedingly well due to apparent reasons.
“Corporatisation is a bold initiative to ensure more efficiency and a level-playing field,” says Vizag General Cargo Berth Pvt. Ltd CEO D.K. Manral.
Trade union leaders say the decision is not new. Already the process has been started. For instance, in Visakhapatnam Port itself, mechanisation work is going on at a cost of Rs.13,000 crore, most of it in BOT mode.
“Their main intention is to prune the staff size drastically and convert everyone into contract/outsourced workers,” says senior AITUC leader and trustee of Visakhapatnam Port V.V. Rama Rao.
Representatives from all the central trade unions have decided to go on an indefinite strike to oppose corporatisation.
The government is keen on improving the efficiency of major ports M.T. Krishna Babu, Chairman of VPT
