15-Mar-2022: Effect of Major Port Authorities Act, 2021

The Major Port Authorities Act, 2021 provide for regulation, operation and planning of Major Ports in India and vests the administration, control and management of such ports upon the Boards of Major Port Authorities. The legislation empowers these ports to perform with greater efficiency on account of increased autonomy in decision making and by modernizing their institutional framework. 

These ports have been empowered to fix Scale of Rates for port services and assets.  PPP concessionaires are free to fix tariffs based on market conditions etc.  The compact Board with professional independent Members is capable of strengthening decision-making and strategic planning.

The total capacity of Major Ports and the amount of cargo handled prior to the commencement of the Act is given as under:

* million tonnes per annum

Connectivity is one of the critical enablers for ports as it is the end to end effectiveness of the logistics system that drives competitiveness for industry.  Sagarmala programme has a dedicated pillar of Port connectivity projects for enhancing connectivity between ports and domestic production / consumption centers.

There are 190 road and rail connectivity projects worth Rs. 1.22 lakh crore identified for implementation under Sagarmala focusing on connectivity of major and non-major ports.  Out of which, 50 projects have been completed and 140 projects are in various stages of development and implementation.  These projects are primarily being implemented by Ministry of Road, Transport and Highways (MoRTH), Major Port Authorities and other State agencies.

The Government has taken several initiatives towards Port modernization, mechanization and digitalization with emphasis on ease of doing business initiatives.  This includes the introduction of web-based e-forms, direct port delivery, container scanners, radio frequency identification based systems for gate automation, single window interface for facilitating trade and integration of more and more sea ports with the Port Community System software.

Further, as part of Maritime India Vision (MIV) 2030, globally benchmarked targets have been defined to help India develop best-in-class port infrastructure.  The development of Indian Ports is estimated to drive cost savings to the tune of Rs. 6,000-7,000 Crore per annum for EXIM clients and help unlock Rs. 70,000 - 75,000 Crore worth of potential revenue. MIV 2030 targets 423 MTPA of capacity addition at Major Ports for the next 10 years. A total investment cost of over Rs. 33,400 Crore has been envisaged for this capacity expansion.  Out of this, approximately 95% capacity expansion is likely to be planned under Public Private Partnership (PPP) / Captive mode by Major Ports.

10-Feb-2021: Parliament today passes landmark Major Port Authorities Bill,2020

Parliament today passed the Major Port Authorities Act,2021. Shei Mansukh Mandaviya, Minister of State (I/C) for Ports, Shipping &Waterways moved the bill in Rajya Sabha today and it was passed. Now the Bill will go  to the President of India for his assent.

With a view to promote the expansion of port infrastructure and facilitate trade and commerce, the Major Port Authorities Bill 2020 bill aims at decentralizing decision making and to infuse professionalism in governance of major ports. It imparts 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. This will empower the Major Ports to perform with greater efficiency on account of full autonomy in decision making and by modernizing the institutional framework of Major Ports.

The salient features of the Major Port Authorities Bill 2020 are as under: -

1. The Bill is more compact in comparison to the Major Port Trusts Act, 1963 as the number of sections has been reduced to 76 from 134 by eliminating overlapping and obsolete Sections.
2. The new Bill has proposed a simplified composition of the Board of Port Authority which will comprise of 11 to 13 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 representatives of 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 Port Authority.
3. 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 Port Authority has been delegated the power to fix the scale of rates for other port services and assets including land.
4. An Adjudicatory 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.
5. The Boards of 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 instances.
6. The Board of each Major Port shall be entitled to create specific master plan in respect of any development or infrastructure.
7. Provisions of CSR & development of infrastructure by Port Authority have been introduced.
8. Provision has been made for safeguarding the pay & allowances and service conditions including pensionary benefits of the employees of major ports.