Bureaucracy ridden Indian Major Port industry controlled by the Shipping
ministry at Delhi will get the much needed Autonomy with the Union Cabinet
giving nod to the much awaited Major Ports Authority Bill replacing the 1963
law governing the sector.
The bill to be adopted
during the ensuing budget session of parliament
bill will be introduced and adopted during the ensuing budget session of
parliament. The exercise to bring about radical changes in the Port
administration is pending before the parliament for the past five years.
bill will be coming to the Parliament for the second time after a gap of five
years since the previous Parliament referred it to the Standing Committee for
detailed evaluation of the various clauses of the bill.
bill also got lapsed due to the dissolution of the previous Lok Sabha in May
last year when it was under the scrutiny of the Committee. It therefore had to
be cleared by the Union Cabinet De-novo on February 12. The bill cleared by the
Cabinet had incorporated changes suggested by the Standing committee of
Port Authority Bill, 2020 provides more operational autonomy
Cabinet chaired by Prime Minister Narendra Modi has approved Major Port
Authority Bill, 2020 to replace existing Major Port Trust Act. It will provide
more operational autonomy to ports and fast decisions will be possible at port
level only. The Bill will be introduced in ensuing session of Parliament,"
Shipping Minister Mansukh Lal Mandaviya said.
The Bill after it becomes an act following the
passage in Parliament will empower the Major Ports to perform with greater
efficiency on account of full autonomy in decision making and by modernizing
the institutional framework of major ports, Mandaviya said.
This will not only boost India''s EXIM trade but
generate employment, he added.
bill to infuse professionalism in governance of major port
"With a view to promote the expansion of Port
Infrastructure and facilitate trade and commerce, the proposed bill aims at
decentralizing decision making and to infuse professionalism in governance of
major ports," a Ministry of Shipping statement said.
The new Major Ports Authority Bill, 2020 would
help to impart faster and transparent decision making benefiting the
stakeholders and better project execution capability, it said.
The Bill is aimed at reorienting the governance
model in central Ports to landlord port model in line with the successful
global practice, it said and added, this will also help in bringing
transparency in operations of Major Ports.
Bill prepared after extensive consultation with all the stakeholders
The government said the proposed Bill has been
prepared after extensive consultation with all the stakeholders and
Ministries/Departments after taking into account the recommendations of a
parliamentary standing committee.
It said the Bill is more compact in comparison to
the Major Port Trusts Act, 1963 as the number of sections has been reduced to
76 from 134 by eliminating overlapping and obsolete Sections.
by Port Authority to act as a reference tariff
The role of Tariff Authority for Major Ports
(TAMP) has been redefined as Port Authority has now been given powers to fix
tariff, which will act as a reference tariff for purposes of bidding for PPP
(public private partnership) projects.
"The Board of the Port Authority has been
delegated the power to fix the scale of rates for other port services and
assets including land...The Boards of the Port Authority have been delegated
full powers to enter into contracts, planning and development, fixing of tariff
except in national interest, security and emergency arising out of inaction and
default," it said.
of each Major Port entitled to create specific master plan
The Board of each Major Port shall be entitled to
create specific master plan in respect of any development or infrastructure
established or proposed to be established within the port limits, it said and
added that provisions have been made for safeguarding the pay and allowances
and service conditions including pensionary benefits of the employees of major
Earlier, the Bill was introduced in the Lok Sabha
in 2016 and thereafter referred to the Parliamentary Standing Committee (PSC).
The PSC, after taking evidence and wide spread
consultations, submitted its report in July 2017. Based on this, the Ministry
of Shipping introduced the official amendment to the Bill in the Lok Sabha in
2018. However, the Bill got lapsed after the dissolution of previous Lok Sabha.
India has 12 major ports -- Deendayal (erstwhile
Kandla), Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Kamarajar
(earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata
These together had handled 699.04 million tons
(MT) of cargo during 2018-19.