We'll get a level playing field and competition will increase: Chairman of Mumbai Port Trust

Interview with Sanjay Bhatia

SANJAY BHATIA, chairman, Mumbai Port Trust, talks to Sanjay Jog on the Major Port Trust Authorities Bill and why it's welcome. Edited excerpts:
 
What will be the impact of divesting the Tariff Authority for Major Ports (TAMP) of regulatory power to fix rates?
 
It is a big positive. Under the proposed Bill, all PPP (public-private partnership) operators will be free to fix rates on market conditions. TAMP’s role is redefined; it will fix a tariff (rate), which will be a reference for purposes of bidding for PPP projects.

 
A number of private ports have come up and they are deciding tariffs on their own but those in the public sector were unable to. With this provision, TAMP’s role in deciding this will go away. A separate adjudicator will be appointed, who can be approached by the port and the stakeholders for settlement of disputes.
   
This will clearly provide a level playing field to ports in the public sector with the private sector ones. Today, it is not there; ports in the public sector are unable to reduce tariff on their own. The provision will promote competition.
 
Further, the Bill proposes empowerment of  12 major ports to perform with greater efficiency, on account of full autonomy in decision making.

How will ports, especially yours, benefit from the provision to do away with the approvals from local authorities for expansion?
 
Within the port limits, a port can prepare its own master plan; it will not require any other approval. The MPT board has prepared one to to develop 300 hectares, to unlock the potential of waterfront properties. Recently, we appointed HCP and PwC for its preparation; that work has started.  Ones this gets into implementation, this will change the whole eastern waterfront of Mumbai.
 
Your view on the provision for commercial borrowing and loans?
 
Port boards would not need government approval for raising loans, appointment of consultants, execution of contracts and creation of service ports. MPT is carrying out expansion through self-financing.