Kelkar Committee suggests speed up green clearances

The report also suggested a path for moving from pre-TAMP to the TAMP method. Frequent tariff revisions have resulted in multiple business frameworks

The Vijay Kelkar Committee on public-private partnership (PPP) has stressed on quicker environmental clearances for ports and on making authorities responsible for providing infrastructure.

It also sought clarity on stamp duty on concession agreements. There is considerable uncertainty whether concession agreements are to be as agreements, leases or licences.

The report also suggested a path for moving from pre-TAMP (Tariff Authority for Major Ports) to the TAMP method. Frequent tariff revisions have resulted in multiple business frameworks for similar projects, depending on the period of their concession. The methodology and guidelines adopted for determining the ceiling tariff have been revised periodically by TAMP in 1998, 2005, 2008 and 2013.

The report states there is an urgent need to focus on strengthening systems to speed up the overall environmental clearance process in general and for the port sector in particular by increasing manpower, infrastructure and competencies with statutory authorities at the state and central levels.

The report also suggests making authorities responsible for providing support in infrastructure facilities, including land, reliable access to utilities, dredging, and rail and road evacuation infrastructure, through enforceable obligations.

K Ravichandran, senior vice-president and co-head, corporate ratings, Icra, said, "The recommendations have been sought by the industry for a long time. The mention of support infrastructure facilities in the recommendations will speed up the implementation of projects. Also, moving from pre-TAMP to TAMP will take care of much litigation."