Lok Sabha Question No. 221 (UNSTARRED), answered on 2017-02-02
Subject: Major Port Trusts Act, 1963
Ministry: SHIPPING
Asked by: RAM CHARITRA

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO.221 ANSWERED ON 2 nd  FEBRUARY, 2017

## MAJOR PORT TRUSTS ACT, 1963

## 221. SHRI RAM CHARITRA NISHAD:

Will the Minister of SHIPPING  be pleased to state:

## पोतप�रवहनमंत्

- (a) whether the Government proposes to replace the existing Major Port Trusts Act, 1963 by the Major Port Authorities Bill, 2016;
- (b) if so, the details and the objectives thereof;
- (c) whether the Government proposes to redefine the role of Tariff Authority for Major Ports (TAMP) and if so, the details and the objectives thereof;
- (d) whether the Government proposes to create an independent Review Board to carry out residual function of the erstwhile TAMP; and
- (e) if so, the details and the objectives thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

- (a) Yes, Madam.
- (b) The salient features of the Major Port Authorities Bill, 2016 are given in Annexure.
- (c) In  the    proposed  Bill,  it  has  been  suggested  that  the  Board  of  each  Major      Port  Authority    or  the Committee or Committees appointed in this behalf by the Board would have the power to frame the scale  of rates for  all  port  related  activities  such  as  usage  of  port  assets,  handling  different  classes  of goods, vessel related charges etc.
- (d)&(e):The Major Port Authorities Bill  provides  for constituting an Adjudicatory Board which is to perform, interalia, the functions  envisaged to be carried out by the erstwhile  Tariff Authority  for Major Ports arising  from  the  Tariff  Guidelines  of  2005,  2008  and  2013  and  tariffs  orders  issued  by  the  said Authority.

## SALIENT FEATURES OF THE MAJOR PORT AUTHORITIES BILL, 2016

- (i) With the growth and development of private ports, the Major Ports are facing severe competition and difficulties  in  implementing  the  changes  which  may  help  the  Major  Ports  compete  in  the  evolving market conditions.  The regulation of tariff in the Major Ports by the Central Government are some of the critical factors hindering their growth and development.  To provide greater autonomy, flexibility to  the  Major  Ports  and  to  professionalize  their  governance,  it  is  proposed  to  repeal  the  Major  Port Trusts  Act,  1963  and  to  replace  it  with  a  new  legislation,  namely  the  Major  Ports  Authorities  Bill, 2016.
- (ii) To constitute the Board of Port Authority for each Major Port in the place of the Board of Trustees.
- (iii) To enable the Board of Port Authority to use its property, assets and   funds in such manner and for such purposes as it may deem fit for the benefit of the Major Port.
- (iv) To  enter  into  and  perform  any  contract  necessary  for  the  performance  of  its  functions  under  the proposed legislation.
- (v) To make regulations for the purposes of operations, development and planning of the Major Port.
- (vi) To frame the scales of rates for assets and services available at Major Port.
- (vii) To claim lien on such goods and to seize and detain the same until such rates and rents are fully paid.
- (viii) To empower the Board of Port Authority to raise the loans and issue securities for the purposes of the capital expenditure and working capital requirements of such port authority.
- (ix) To constitute and Adjudicatory Board for adjudication of disputes among Major Ports, Public Private Partnership concessionaries and captive users.  This Adjudicatory Board shall consist of a Presiding Officer and such other Members not exceeding two, as may be appointed by the Central Government.
- (x) To make a provision for Corporate Social Responsibility measures within the port limits.
- (xi) To  provide  for  regulation,  operation  and  planning  of  Major  Ports  in India and  to vest the administration, control and management of such ports upon the Boards of Major Port authorities and for matters connected therewith or incidental thereto.

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## ANNEXURE