Chennai: The ongoing corporatisation process of major ports is "illogical and meaningless" according to S Sathyam, chairman, Tariff Authority for Major Ports (TAMP).

"The very process of corporatisation without disinvestments and actual transfer of properties is a meaningless exercise, he said asking why not, instead go in for straight privatisation.

Sathyam was speaking at an interactive session on the role of TAMP organised by the Consultative Committee of City Chambers of Commerce, here on July 16.

He said if the idea was to get out of the purview have TAMP by corporatisation, the government was already considering the question of subjecting even corporatised ports to the regulation of TAMP adding that minor ports are also likely to be brought under the purview of TAMP shortly.

Strongly defending the continuance and relevance of a regulatory authority like TAMP even in the post liberalisation era, he said the advantages of a regulatory mechanism were enormous to the users as it would guard them against the emerging private monopolies in the port sector.

Sathyam said that it would take much time for the market forces to develop and perfect competition to emerge in the post liberalisation era warranting the continuance of a regulatory authority like TAMP "not just to deal with the transient situation but on a perpetual basis".

Ruling out the possibility of regulations withering away in the liberalised scenario, he said it would continue but the only thing was that the regulatory style was likely to undergo changes. The TAMP chairman also wanted more powers to be given to the authority and favoured expanding its charter beyond fixation of tariff.

Referring to the problems being faced by TAMP during the last few years, he said though the governmental interference on its functioning was not that much, some ports like the Kolkata port was found to be misusing the "general relief" provisions of the major ports act in a "flippant manner" much to the embarrassment of TAMP.

PTI