likelihood of the new Major Port Authorities Bill, 2016 being passed by
Parliament in the next session, the port operators demand that their contracts
may be migrated to the new regime; however, the Government is not in favour of
automatic migration of the contracts; it wants them to be aware of the revenue
model under the new regulations before they effect the shift and the government
is not against migration as such.
passage of the Bill the Tariff Authority for Major Ports (TAMP) would practically
go out of existence but the regulations passed by it before 2013 would remain
valid for the contracts prior to that period.
private port operators and members of the Indian Private Ports & Terminals
Association (IPPTA) like Essar Ports Ltd ask for the migration to the new rules
, Cargo handling firms go one step further and want not just 2005 contracts but
everyone should be allowed to migrate..
of intense debate the Government at last decided to scrap TAMP and go in for a
change in the institutional structure of 11 ports by converting them into
Authorities from trustee-set up. In fact, port investors have always been
demanding to wind up TAMP affected by the rate cuts and they argued that
freeing from the regulatory controls would help India get private investment in
state-run ports. The new regulations provided certain flexible framework, as
Manish Gupta, head (port business) at Vedanta has observed.
Authority Bill 2016 confers more autonomy and flexibility on port boards; and
all future PPP (public-private-partnership) operators will be free to fix
tariff based on the market conditions—a long-pending privilege in demand—and it
is enough they notify the decisions to the port authority. The Bill,
comprehensive in conception, also calls for setting up of an independent review
board to look into disputes between ports and PPP concessionaires. In short, it
brings in a clear professional approach in their governance.
to the new rules signifies in abstract movement from rigidity to flexibility.