Cabinet gives in principle approval for disinvestment of 100% govt equity shares in Kamarajar Port

New Delhi: The Cabinet Committee on Economic Affairs chaired has given 'in principle' approval for strategic disinvestment of 100 percent government equity shares in Kamarajar Port Limited (KPL) to Chennai Port Trust (ChPT) in a single stage process.

Presently, the government and Chennai Port Trust hold 67 percent and 33 percent 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.

“This would help to avoid duplication of capacity creation in the ports. Better human resource management in between the two ports will increase the efficiency of both Ports,” an official release said.

The strategic disinvestment of KPL shall be undertaken after conducting due diligence exercise by both the entities with the help of Advisors to be appointed for the transaction.

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, the release said.