New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal to replace the Major Port Trusts Act, 1963 by the Major Port Authorities Bill, 2016, which will help in empowering major ports.
It approved the proposal of Ministry of Shipping to replace the Major Port Trusts Act, 1963.
In the landlord port model, the publicly governed port authority acts as a regulatory body and as landlord, while private companies carry out port operations mainly cargo-handling activities. Here, the port authority maintains ownership of the port, while the infrastructure is leased to private firms that provide and maintain their own superstructure and install own equipment to handle cargo. In return, the landlord port gets a share of the revenue from the private entity. In the service port model, the port authority owns the land and all available assets fixed and mobile and performs all regulatory and port functions.
“This will empower the major ports to perform with greater efficiency on account of full autonomy in decision making and by modernising the institutional structure of major ports,” said a cabinet communique.
“With a view to promote the expansion of port infrastructure and facilitate trade and commerce, the proposed bill aims at decentralising decision making and to infuse professionalism in governance of ports,” it added.
The port authority has been given powers to fix tariff which would act as a reference for purposes of bidding for public-private partnership (PPP) projects. PPP operators will be free to fix tariff based on market conditions.
The board of the port authority has been given the power to fix the scale of rates for other port services and assets, including land. An independent review board has been proposed to be created to look into disputes between ports and PPP concessionaires.
In September, the shipping ministry invited public comments for the proposed bill, put in the public domain for the second time after incorporating feedback received from stakeholders.
An analyst said that implementation will be key. “The bill intends to give more autonomy to the major ports, but will it actually translate into real autonomy is a matter of question,” said Anil Devil, chief executive of Indian National Ship Owners Association.
The Union cabinet on Wednesday also approved a revised Air Services Agreement (ASA) between India and Nigeria to improve air connectivity between the two countries.
The cabinet also approved a memorandum of understanding between the rural development ministry and the Food and Agriculture Organisation to improve the effectiveness of rural development programmes in India and to facilitate knowledge sharing.
The cabinet also noted the signing of an MoU between the Indian Space Research Organisation and United States Geological Survey for cooperation in the exchange and use of US Land Remote Sensing Satellite Data.
