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The Cabinet approved a Major Port Trust Authorities Bill to replace the Major Port Trusts Act of 1963. This is aimed at more autonomy in decision making to the 12 major ports.
“It would lead to greater flexibility and professional management at the major ports,” Shipping Secretary Rajive Kumar told Business Standard.
The 12 major ports -- Kandla, Mumbai, JNPT (Navi Mumbai), Marmugao, New Mangalore, Cochin, Chennai, Ennore, VO Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) — handle 61 per cent of total cargo traffic.
The number of sections in the Bill are 65, from the existing 134 lengthy sections. Also proposed is a leaner Board of Port Authority, comprising 11 members from the present 17-19.
A more compact Board with professional and independent members will strengthen decision making and strategic planning, went an official statement.
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Provision has been made for inclusion of representatives of the state government in which the major port is situated. Also, officials from the ministries of railways and defence, and the departments of revenue and customs, apart from a government nominee and a member representing the employees.
The Bill seeks to give the Tariff Authority for Major Ports (TAMP) the power to fix rates, to then be a reference for purposes of bidding for public-private partnership (PPP) projects. Residual functions of TAMP for major ports would be conducted by an independent review board, to be created under the new law.
The new Board to be constituted under the Bill would look into disputes between ports and PPP concessionaires, to review stressed PPP projects and suggest measures, and to look into complaints regarding services rendered by the ports or private operators operating within these.
It has been delegated full powers to enter into contracts, planning and development. At present, prior approval of the central government is required in 22 cases. It further empowers the Board to make its own Master Plan in respect of the area within the port limits and to construct within port limits any pipelines, telephones, communication towers, electricity supply or transmission equipment.
