Government to sell its stake in Kamarajar Port to Chennai Port Trust

NEW DELHI: The Cabinet Committee on Economic Affairs on Thursday gave in-principle approval for the sale of all its equity in Kamarajar Port to the Chennai Port Trust, which is also owned by the Government of India. The Union government holds 67 per cent in the Kamarajar Port Limited, rest is owned by Chennai Port Trust.

Briefing the media on the development, Finance Minister Arun Jaitley said the strategic disinvestment would be done in a single stage process, following  ‘arm’s length’ principle.

This means, the transfer price would be set at open market levels. Once the disinvestment is complete, there would be no “duplication of capacity creation in the ports and better human resource management in between the two ports will increase the efficiency of both,” the government said. “ChPT and KPL will be able to evolve a clear policy on focus areas by devising optimum business strategy.” 

According to officials, the transaction would be undertaken after conducting due diligence with the help of advisors who are to be appointed. 

Independent firm
Located at Ennore, Kamarajar Port was initially conceived as a satellite port for Chennai but has been functioning as an independent company so far