The shipping ministry has strongly opposed strategic sale in Shipping Corporation of India (SCI) and some ports under its watch including Kamarajar Port, joining a number of other ministries that are not keen on selling state-run enterprises that they govern.
The government currently holds 63.75% stake in Shipping Corporation and 66.67% in Kamarajar Port. A senior Shipping ministry official revealed that shipping minister Nitin Gadakri has strongly opposed the divestment of SCI on grounds it is not only profitable but the proceeds are also reinvested in capacity building in areas where the private sector shy away from investment.
“The government wants to do Sagarmala project and inland waterways and there is hardly any budgetary allocation to these two areas. Our plan is to invest profit from ports in development of coastal areas and make inland rivers navigable,” said the above quoted official. Last fiscal, all 12 major ports owned by the government posted a profit of Rs.5,000 crore. Shipping Corporation has also been in profit in the last two years.[/vc_column_text]
