Chennai Port to operate Kamarajar Port as subsidiary

In a significant development, the Cabinet Committee on Economic Affairs recently gave ‘in principle’ approval for strategic disinvestment of 100% equity shares of Government of India in Kamarajar Port Limited (KPL) to Chennai Port Trust (ChPT) in a single stage process, by following ‘Arm’s length’ principles. After the transfer of the complete equity shares right, Kamarajar Port will be operated as subsidiary by Chennai Port Trust.

Presently, the Government of India and Chennai Port Trust hold 67% and 33% of shares respectively in Kamarajar Port Limited.   The methods of valuation, to be used shall include discounted cash flow, assets valuation and relative valuation as recommended by NITI Aayog.

The approval is in the backdrop that ChPT and KPL will be able to evolve a clear policy on focus areas by devising optimum business strategy and defining dedicated cargo profile.

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