In the next major reform push for India’s port sector, the Narendra Modi-led government has begun discussions to corporatise the 11 major ports owned by the Union government, which are currently operated as statutory port authorities, sources said.
The move comes barely five years after these ports were converted from trusts into authorities under the Major Port Authorities Act, 2021, which replaced the six-decade-old Major Port Trusts Act, 1963. Corporatisation would require amendments to the 2021 law, with Chennai Port Authority and Jawaharlal Nehru Port Authority (JNPA) likely to be the first ports considered under the new plan.
Why corporatisation is back
The Centre had earlier explored corporatising major ports on the lines of Kamarajar Port Ltd—India’s only state-owned port run as a company under the Companies Act—to help government-owned ports compete more effectively with private operators. However, strong resistance from port workers’ unions led the government to opt for the ‘authority’ model instead, granting greater operational and financial autonomy without altering their statutory character.
With the influence of port unions waning, the government appears to be making a renewed attempt to push through corporatisation. Officials believe a corporate structure would further professionalise governance, enable faster decision-making, improve access to capital markets, and unlock higher valuations.
Kamarajar Port as the template
Kamarajar Port Ltd, which became a 100 per cent subsidiary of Chennai Port Authority in 2020 following a government-to-government disinvestment deal worth ₹2,383 crore, is emerging as the model for the proposed transition. The government is also finalising plans to take Kamarajar Port public through an initial share sale, as earlier reported.
Converting Chennai Port Authority into a corporate entity could pave the way for a future merger with Kamarajar Port, creating a consolidated port handling over 100 million tonnes (mt) of cargo annually—an outcome seen as valuation-accretive and attractive to investors.
In FY25, Kamarajar Port handled 48.41 mt of cargo, while Chennai Port Authority handled 54.95 mt. Between April and November of the current fiscal, cargo volumes stood at 31.96 mt and 38.43 mt, respectively.
Investor interest growing
Other major ports such as Paradip Port Authority and Deendayal Port Authority already handle over 150 mt of cargo annually and continue to post strong growth, making them potential candidates for future corporatisation and market listings.
According to officials, the Ministry of Ports, Shipping and Waterways has held several rounds of discussions focusing on Chennai Port Authority’s financial health, capital expenditure plans, loan liabilities, balance sheets for the past three years, timelines for corporatisation, and the legislative changes required.
Sector context
India’s 12 major ports, including Kamarajar Port Ltd, handled a combined 853.57 mt of cargo in FY25 and 591.20 mt between April and November of the current fiscal year. At present, only three port companies—Adani Ports and Special Economic Zone Ltd (APSEZ), JSW Infrastructure Ltd and Gujarat Pipavav Port Ltd—are publicly listed.
APSEZ, India’s largest private port operator, handled 450 mt of cargo across its network of 19 ports and terminals in FY25. Its shares closed at ₹1,434.40 on the BSE on Friday.
If implemented, the corporatisation of major ports would mark a significant structural shift in India’s maritime sector, potentially reshaping competition between state-owned and private port operators while opening new avenues for investment and consolidation.
