Ports in India may soon be able to fix their own market based tariffs for higher returns, with the Shipping Ministry mulling doing away with the Tariff Authority for Major Ports and bringing in a new regulator for the sector.
"Major ports feel that they are at a disadvantage and want the government should either make Tariff Authority for Major Ports (TAMP) mandatory for all ports or free them from its jurisdiction" a Shipping Ministry official told PTI.
Shipping Ministry is working on establishing a Port Regulator for all ports for setting, monitoring and regulating service levels and technical and performance standards.
"Now TAMP would be the grievance redressal mechanism," the official said adding that the new body may also see change of name.
Maritime states in the country including Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra do not have regulators on the lines of country's Power Sector which have State Electricity Regulatory Commissions that regulate electricity tariffs in the states.
"Maritime state governments do not have their own regulatory authority. This authority would do the regulatory work and is aimed at providing a level playing field for all major and minor ports," he said.
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There are 13 major ports in the country -- Kandla, Mumbai, Jawaharlal Nehru Port Trust, Marmagao, New Mangalore, Kochi, Kolkata, Haldia, Paradip, Visakhapatnam, Chennai, Tuticorin and Port Blair.
TAMP was constituted in April 1997 to provide for an independent Authority to regulate all tariffs, both vessel related and cargo related.
It was also intended to fix rates for lease of properties in respect of Major Port Trusts and the private operators located therein.
TAMP has jurisdiction only over major port trusts and private terminals therein. It is responsible for prescribing the rates for services provided and facilities extended by them and also rates for lease of port trust properties.
It is empowered not only to notify the rates but also the conditionalities governing application of the rates.