Govt Constitutes Tariff Authority For Major Ports

The Union government has constituted a three-member tariff authority for major ports headed by S Sathyam, former secretary (statistics) in the government of India. A notification to this effect was issued last month.

The two other members of the authority are Rakesh Mohan, director general, National Council of Applied Economic Research (NCAER) and J V Shetty, director, Institute for Banking Personnel Selection. Both of them are part-time members. The head office of the authority is located at New Delhi. All major port trusts will have to clear the various tariffs fixed by them with the authority. Formerly the vetting was done by the ministry of surface transport. Some of the tariffs that now come under the purview of the authority are berth hire charges, wharfage and demurrage.

 

The setting up of such an authority was mooted under the new port privatisation guidelines issued by the ministry of surface transport in October, 1996.

Since the Major Port Trusts Act, 1963 did not provide for such an authority it had to be amended. The amendment was carried out earlier this year by introducing Chapter VA in the Act.

The guidelines had indicated that only the upper ceiling on various tariffs will be set by the authority. However, the amendments make it clear that the tariff itself will have to be cleared by it.

The amended Act clearly states that the chairperson should be either a secretary to the government of India or a former secretary. Of the two other members one should be an economist with at least 15 years experience in transport or foreign trade while the other should be drawn from finance. He too should have a minimum experience of 15 years.

The chairperson can hold office for five years or till he attains the age of 65 years, whichever is earlier. The central government can remove the members of the authority including the chairman if they refuse to act or become incapable of acting. They can also be removed if the government feels they have abused their position and their continuance is detrimental to public interest.

The central government can suspend the office-bearers during the period they face an inquiry.

The government also has the power to supercede the authority. At the end of the supersession period it may either extend the supersession or reconstitute the authority.