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Shipping Ministry asks Indian Port Association to prepare a concept paper to facilitate Major Ports to fix their tariff

Shipping Ministry has asked the Indian Port Association to prepare a concept paper and draft guidelines for tariff fixation which the state owned ports Major Ports will follow after the new Major Port Authorities Bill is adopted by both the houses of Parliament.

The Lok sabha has adopted the bill during the last monsoon session and it is awaiting passage of the Rajya Sabha during the winter sessions of parliament scheduled in December. Once the bill is passed by both the Houses of Parliament and secures the assent of the President of India, it becomes the law of the land governing major ports

The IPA has been asked to prepare a concept paper in consultation with the ports and other stakeholders since the adopted act would see the end of the central authority TAMP

A new approach has to be adopted for tariff fixation, the principles of tariff fixation exercise need to be spelt out clearly. There may be a need to spell out the processes to be followed for fixing tariffs.

A note prepared by TAMP on some scenarios after deregulation of fixation of tariff for Major Port Trusts and ppp projects operating there

Currently the tariff fixation at major ports is undertaken by a central agency TAMP

Currently the tariff fixation at major ports is undertaken by a central agency Tariff Authority for Major Ports and individual ports cannot decide the tariff they will charge for port users. This put them at a serious disadvantage against private ports whose tariff fixatation is flexible and market driven

Under the proposed Major Port Authority legislation, Major Ports would have the complete freedom to decide their tariff rates.

The proposed new legislation does not empower a regulator like TAMP to fix tariff

In contrast to the existing Major Port Trusts Act, 1963, the proposed Major Port Authority legislation does not provide or empower a regulator such as TAMP to perform the tariff fixation function.

Once the proposed law is enacted and enforced, tariff under the new regime would have to be provided. Therefore, a view needs to be taken on the process and principles to be adopted by the Major Ports in the fixing of tariff both for the services provided directly and through operators engaged by them.

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