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| Panel calls for inclusion of non-major ports under tariff regulation |
| Ruchika Chitravanshi / New Delhi May 02, 2010, 00:57 IST |
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The BK Chaturvedi-led Committee is likely to propose that non-major ports be brought under a tariff regulatory framework to create a level playing field across all ports.
“Several non-major ports are no less than the major ports in terms of capacity, so why should they be left free for market forces and only major ports be regulated,” a senior official in the shipping ministry told Business Standard.
The committee was set up to look into the infrastructure sector, including ports, and recommend changes to prime minister Manmohan Singh. While there are 187 non-major ports, which are state subjects, the 12 major ports come under the purview of the Centre.
However, it is not clear whether the non-major ports will be brought under the regime of Tariff Authority of Major Ports (TAMP), the regulator which fixes tariffs for major ports, or under a separate body.
The government also feels that the market is not mature enough for ports to be left free and let the market forces take over completely.
“TAMP should just be an appellate body. It should not be fixing tariffs since that defeats the purpose of the market,” said Anil Singh, senior vice-president and managing director subcontinent, DP World.
With the 12 major ports working on a public-private partnership (PPP model), the ministry of shipping feels that certain changes in the functioning of TAMP are essential. “The main idea is to simplify and shorten the time period of tariff notification. It will lead to faster bidding, efficient functioning of the ports,” said the senior official. TAMP was also facing shortage of staff, said the official.
The official also said that procedures of TAMP were quasi judicial in nature and they didn’t have the power to enforce. The Department of Economic Affairs has stressed the need to strengthen TAMP. The tariff body also needs to monitor the services provided by the ports during a concession period.
“There is a problem of capacity shortage, which has to be addressed. Industry should be deregulated. We are going the other way,” said Captain Sriram Ravi Chander, chief operating officer, Visakha Container Terminal.
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