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| Small ports may come under central regulator |
| Sharmistha Mukherjee / New Delhi Aug 16, 2009, 00:29 IST |
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The shipping ministry is considering bringing the 200 non-major ports in the country under the purview of the Major Ports Regulatory Authority Act, 2009, (MPRAA).
“Initially, the new legislation was to be applicable to the 12 major ports under the jurisdiction of the Centre. However, in the recent consultative meeting held with the chairmen of major ports, it was decided to extend its ambit,” a highly placed source in the ministry revealed.
“The chairmen (of major ports) were vociferous in their demand that the legislation be applied to non-major ports for creation of a level-playing field,” the official added.
At present, maritime states and private players who operate the 200 non-major ports in the country have regulatory freedom, including that for determining tariffs at their ports.
The new legislation, when extended, would not only empower the Tariff Authority for Major Ports (TAMP) to fix the scale of rates for these ports, but would also authorise the regulator to prescribe the performance norms and standards of quality, continuity and reliability of service to be provided by the port authorities and private operators.
Further, TAMP would monitor the actual performance and service levels provided at the ports so as to secure compliance of such prescribed norms and standards by the port authorities and operators. Non-adherence to the measures chalked out would be penalised with a fine that may extend to Rs 1 crore.
Ministry sources informed, “Non-major ports which handle a lot of import cargo will be brought under the new Act in the first phase. Eventually, the Act would be made applicable to the other ports.”
Considering that the incorporation of the recommendation and approval of the revised MPRAA by the government may take some time, the ministry of shipping has simultaneously initiated work to revise some of the existing provisions related to the working of TAMP.
The present guidelines for functioning of the regulator are set to lapse in March 2010. Prior to that, the ministry intends to frame modified guidelines pertaining to commercial activity and effective use of land, warehouses and properties at ports.
The MPRAA has been framed by the ministry as a successor to the provisions of the Major Port Trust Act, 1963, insofar as the working of TAMP is concerned. The Act is intended to widen the functioning of the tariff regulator and empower it to penalise port authorities and private operators for non-compliance with its norms and standards.
TAMP, in its existent framework, has frequently been accused of being powerless to enforce its own rulings or take corrective measures by punishing those found breaching the terms and conditions.
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