The Union Government has revived discussions on corporatising India’s major ports, signaling a potential shift in the governance structure of some of the country’s most critical maritime assets. The move is aimed at improving operational efficiency, financial autonomy and global competitiveness, at a time when the influence of port labour unions has reportedly declined.
Currently, India’s major ports operate as port authorities under the Major Port Authorities Act, 2021, which replaced the earlier trust-based system and granted greater decision-making powers to port managements. However, policymakers are now examining the possibility of taking reforms a step further by converting select major ports into corporate entities under the Companies Act, similar to the model followed by Kamarajar Port.
According to officials familiar with the deliberations, ports such as Chennai Port Authority and Jawaharlal Nehru Port Authority are among those being considered for corporatisation in the initial phase. Such a transition would require amendments to existing legislation, as the current legal framework does not permit full corporate restructuring of major ports.
The renewed push comes after earlier attempts to corporatise ports were stalled due to strong resistance from labour unions, which feared job losses and dilution of worker protections. With union influence now perceived to be diminishing, the government sees greater room to pursue long-pending structural reforms.
Supporters of corporatisation argue that a company-based structure would allow ports to raise capital more easily, respond faster to market conditions, attract private investment and compete more effectively with private port operators. It could also pave the way for future strategic options such as asset monetisation, mergers of adjacent ports, or even public listings.
India’s major ports together handle over 850 million tonnes of cargo annually, making them central to the country’s trade and logistics ecosystem. While some ports have shown strong growth and efficiency improvements in recent years, policymakers believe that deeper governance reforms are necessary to meet rising cargo demand, modernisation needs and global competition.
At present, only a handful of Indian ports operate under corporate structures or are listed entities, largely in the private sector. Expanding corporatisation within the public port system could mark a significant transformation in India’s maritime policy, with long-term implications for port operations, labour relations and infrastructure financing.
