JNPT chief for divesting 51% to strategic partner

The corporatisation of the port, Pinto felt, should be taken up in four phases. The first step, he said, would be to confer a 100 per cent ownership to the government to avoid valuation problems. This should be followed by disinvestment to the state government, the port trust and FIs.

"The next step would be to disinvest further and invite private equity with a 25 per cent stake which should be hiked later to 51 per cent," Pinto said. The corporatisation of the port would give access to the financial markets as well as bring in a better degree of autonomy and flexibility, Pinto said.

He, however, declined to reveal the time-frame within which it will be completed. He, however, assured that it will be completed as early as possible during this fiscal.

The corporatisation of the port will be instrumental in bringing down the expenditure incurred on cargo by way of foreign trade which is currently at 10 per cent in India, Pinto said. The expenditure incurred in developing countries is about eight per cent while that in developed countries is around four per cent.

The port may have two option of a debt-equity ratio of 1:3.6 and 1:2, Pinto said. These options would provide a return on equity of 19.4 per cent and 25.2 per cent at an equity base of Rs 368.4 crore and Rs 564.9 crore respectively, Pinto revealed.