Govt to sell 100% stake in Kamarajar Port to Chennai Port for over Rs 4k cr

The government has "in-principle" decided upon a strategic disinvestment of 100 per cent equity in Kamarajar Port Limited to Chennai Port Trust in a single-stage process by following ‘arms length’ principles. 

The deal size is expected to be in the range of Rs 4,000-5,000 crores.

In the four years, Kamarajar Port grew at 11 per cent -- from 27.34 million tonnes in 2013-14 to 30.45 million tonnes in 2017-18. 

“It should take 4-6 months for the deal to close,” said the source.

Kamarajar Port Limited is an unlisted public sector company under the Ministry of Shipping with 67 per cent shareholding held by the Government of India and balance 33 per cent held by Chennai Port Trust. The turnover of the company in 2018-19 (upto 31st December 2018) was Rs 541.83 crore, while net worth of the company is pegged at Rs 2,163.65 crore.