The
Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved the
proposal of Ministry of Shipping to replace the Major Port Trusts Act, 1963 by
the Major Port Authorities Bill, 2016. This will empower the Major Ports to
perform with greater efficiency on account of full autonomy in decision making
and by modernizing the Institutional structure of Major Ports.
With
a view to promote the expansion of port infrastructure and facilitate trade and
commerce, the proposed bill aims at decentralizing decision making and to
infuse professionalism in governance of ports. The new Major Ports Authority
Bill, 2016 would help to impart faster and transparent decision making
benefiting the stakeholders and better project execution capability. The Bill
is aimed at reorienting the governance model in central Ports to landlord port
model in line with the successful global practice. This will also help in
bringing transparency in operations of Major Ports.
The
salient features of the Major Ports Authority Bill are as under:
a. The
Bill is more compact in comparison to the Major Port Trusts Act, 1963 as the
number of sections has been reduced to 65 from 134 by eliminating overlapping
and obsolete Sections.
b. The
new Bill has proposed a simplified composition of the Board of Port Authority
which will comprise of 11 members from the present 17 to 19 Members
representing various interests. A compact Board with professional independent
members will strengthen decision making and strategic planning. Provision has
been made for inclusion of representative of the State Government in which the
Major Port is situated, Ministry of Railways, Ministry of Defence and Customs,
Department of Revenue as Members in the Board apart from a Government Nominee
Member and a Member representing the employees of the Major Ports Authority.
c. The
role of Tariff Authority for Major Ports [TAMP] has been redefined. Port
Authority has now been given powers to fix tariff which will act as a reference
tariff for purposes of bidding for PPP projects. PPP operators will be free to
fix tariff based on market conditions. The Board of the Port Authority has been
delegated the power to fix the scale of rates for other port services and
assets including land.
d. An
independent Review Board has been proposed to be created to carry out the
residual function of the erstwhile TAMP for Major Ports, to look into disputes
between ports and PPP concessionaires, to review stressed PPP projects and
suggest measures to review stressed PPP projects and suggest measures to
revive such projects and to look into complaints regarding services rendered by
the ports/private operators operating within the ports would be
constituted.
e. The
Boards of the Port Authority have been delegated full powers to enter into
contracts, planning and development, fixing of tariff except in national
interest, security and emergency arising out of inaction and default. In the
present MPT Act, 1963 prior approval of the Central Government was required in
22 cases.
f. Empowers
the Board to make its own Master Plan in respect of the area within the port
limits and to construct within port limits Pipelines, Telephones, Communication
towers, electricity supply or transmission equipment. The Board is empowered to
lease land for Port related use for upto 40 years and for any purpose other
than the purposes specified in section 22 for upto 20 years beyond which the
approval of the Central Government is required.
g. Provisions
of CSR & development of infrastructure by Port Authority have been
introduced.
***
AKT/VBA/SH