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JNPT to scout for pvt sector partnership with 51 pc equity

Our Bureau

MUMBAI, June 23

MOVING towards corporatisation, the Jawaharlal Nehru Port Trust would be soon looking for a strategic partner from the private sector to participate in the board with 51 per cent equity.

Addressing IMC members, Mr. M.P. Pinto, Chairman, Jawaharlal Nehru Port Trust, said that for corporatising the port, the first and most significant step was to ascertain the value of the assets. The port has already appointed a private professional body for evaluating the assets.

``Corporatisation would eventually lead to privatisation of the port'', he said.

Mr. Pinto put forward four options for the port's corporatisation. The first is the Union Government holding 100 per cent equity by converting the port's overdue debts to equity.

The second being the Central and State Governments, major ports and financial institutions (FIs) would hold 100 per cent equity together.

The third, the private sector holding 25 per cent equity while major ports, the State Government and the FIs together holding the remaining 75 per cent.

The fourth option would be a private sector strategic partner having a controlling equity stake of 51 per cent and the rest will be with the State Governments, major ports and FIs.

A viable option could be of taking up the first option preceded by the fourth, Mr. Pinto said.

The corporatised board is able to take decisions on the economic and commercial considerations while currently, decisions center around the interest of trustees rather than bottomline.

With India's expanding trade, (of $80 billions last year), it was extremely important that the port was which was an interface between the shipment and the market on the other really reacts to commercial considerations, Mr. Pinto said.

Responding to be a query on whether security would be breached with the presence of a global partner, he said that the security breach was a possibility even at the present scenario without the presence of foreign partners.

The port is expected to have a difficult year in 1999-2000 which would be spill over to 2000-2001 since the amount of debt servicing has risen from Rs. 66 crores in 1998-99 to Rs. 149 crores in 1999-2000, a two and half time increase.