The Divestment Commission on Tuesday recommended against immediate privatisation of Ennore Port, while favouring a public offer for Electronics Corporation arguing that time was not ripe for its privatisation.
In its 23rd report submitted to the government, the commission said that in case of Ennore Port divestment of government's holding should be considered after a period of three years.
It observed that the undertaking incorporated as recently as 1999 was yet to achieve critical size with only two of the 22 berths being utilised.
"In view of this, it is felt that EPL should continue as a government company for a period of three years, by which time the operations are expected to attain critical size," it said.
The government currently holds 67 per cent stake in the company, with the Chennai Port holding the remainder.
It felt that in case of any delay in project implementation, divestment may be considered after an appropriate regulatory framework is installed.
The report said 51 per cent of equity should be divested in favour of a strategic partner through competitive bidding route while balance shares may be divested five years thereafter.
