Parliament clears bill converting major port trusts into port authorities
By TIOL News Service
NEW DELHI, FEB 10, 2021: THE Rajya Sabha on Wednesday passed the Major Port Authorities Bill, 2020 to reorient the governance model in central ports in line with successful global practices.
Union Minister of State for Ports, Shipping and Waterways Mr Mansukh Mandaviya said the bill would encourage good competition among major and private ports.
The bill was passed in the Rajya Sabha with 84 in favour after the Lok Sabha cleared it last September. It will now be sent to President Mr Ram Nath Kovind 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 decentralising decision making and to infuse professionalism in governance of major ports," said the ministry.
The 12 major ports in the country are - Mumbai, Deendayal (also known as Kandla), Mangalore, JNPT, Marmugao and Cochin or the Western Coast. The ones on the Eastern Coast are the ports at Chennai, Tuticorin, Visakhapatnam, Paradip, Kolkata (including Haldia), and Kamarajar (also known as Ennore).
Allaying fears, Mr Mandaviya categorically said that the bill does not intend to privatise major ports and emphasised that it aimed at boosting their decision-making powers in order to compete with private ports.
It seeks to impart faster and transparent decision-making by reorienting the governance model in Central ports to "landlord port model." The creations of Port Authorities for each port, replacing the Port Trusts will provide greater autonomy, flexibility and efficiency, said the ministry.
The new bill simplifies the composition of the Board of Port Authority, redefines the role of Tariff Authority for Major Ports (TAMP) allowing Port Authority's the powers to fix the tariff, and proposed the formation of an Adjudicatory Board to look into disputes and review stressed Public-Private Partnership (PPP) projects.