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.

9-Mar-2022: Cabinet approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 for specifying rate of royalty in respect of certain minerals

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved the proposal of the Ministry of Mines for amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as ‘the Act’) for specifying the rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum.

The approval would ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of Metals, Andalusite and Molybdenum thereby reducing import of these minerals, generating empowerment opportunity in the mining sector as well as manufacturing sector which will help in ensuring inclusive growth of a large section of the society.  Rate of royalty for Andalusite, Sillimanite and Kyanite which are mineral polymorphs are kept at the same level.

The approval will lead to import substitution in respect of many important minerals for the economy of the country thereby saving valuable forex reserves.  It will reduce country’s foreign dependency through the local production of minerals.  The approval would ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of metals, Andalusite and Molybdenum for the first time in the country.

The Act was amended in 2015 to usher in new regime of granting mineral concessions through auction to ensure transparency and non-discrimination in allocation of mineral wealth of the country. Auction regime has matured since then. To give further impetus to the mineral sector, the Act has been further amended in 2021. Under the reforms, the Government has given major boost to auction of mineral blocks, increasing production, improving   ease   of   doing   business   in   the   country   and   increasing contribution of mineral production to Gross Domestic Product (GDP).

Ministry of Mines, led by the vision of Atmanirbhar Bharat given by Hon’ble Prime Minister, has also taken steps for increasing exploration of minerals in the country, which has led to availability of more blocks for auction. Exploration activities have increased not only for traditional minerals such as iron ore, bauxite, limestone but also for deep-seated minerals, fertilizer minerals, critical minerals and minerals which are imported.

In the last 4-5 years, Central Agencies like Geological Survey of India and Mineral Exploration Corporation Ltd. have carried out exploration and handed over reports to the State Governments of several blocks of minerals which are hitherto not mined in the country. When it comes to minerals such as Glauconite/ Potash, Emerald, Platinum Group of Metals (PGM), Andalusite and Molybdenum, the country is totally dependent on import of these minerals for meeting our requirements. As a major step towards mineral self-sufficiency, many State Governments have identified such mineral blocks for auction. However, the rate of royalty for these minerals were not separately provided and was not appropriate for giving impetus to mining of these minerals.

Accordingly, the Ministry had proposed reasonable rates of Royalty in order to encourage better participation in auction, which has been approved by the Union Cabinet led by Hon’ble Prime Minister. These rates have been fixed after extensive consultations with the State Governments and various Ministries/ Department of the Central Government. The Ministry of Mines will also provide methodology for calculation of Average Sale Price (ASP) of these minerals required for enabling auction of these mineral blocks.

With the active cooperation of the State Governments, more than 145 mineral blocks have been successfully auctioned in the country. With further impetus given by the reforms made in the year 2021, more than 146 blocks have been put up for auction in the financial year 2021-22. Of this, 34 blocks have been successfully auctioned in the financial year. Specification of Royalty and ASP for the minerals like Glauconite/ Potash, Emerald, Platinum Group of Metals (PGM), Andalusite and Molybdenum would increase number of blocks for auction.

Minerals like Glauconite and Potash are used as fertilizer in agriculture. Platinum Group of Metals (PGM) are high value metal used in various industries and new innovative applications. Minerals like Andalusite, molybdenum are vital minerals used in industrial applications.

Encouraging indigenous mining of these minerals is in the National interest that would lead to reduction in imports in potash fertilizers and other minerals. This step taken by the Ministry of Mines is also expected to increase generation of employment in mining sector. It will also ensure increased availability of mineral for the downstream industries and support agriculture.