Port JV norms okayed

Under the new guidelines, special purpose vehicles would be set up for special projects at major ports, drawing equity from both the government and private parties.

The guidelines are likely to emphasis on the construction of new facilities at existing ports.

The government is planning to improve productivity of an existing port facility by upgrading and or improving managerial practices and or development of a new port.

The criteria for forging new ventures would include traffic handling capacity of foreign ports, their efficiency and productivity. The foreignpartners should also be keen to up grade Indian ports.

For the ventures between major and minor ports, SPVs will be set up with 51 per cent equity participation by the major ports and 49 per cent by the minor ports.

Major ports will have the freedom to offload a maximum of 26 per cent equity to its partners, which in this case would be other major ports.