Posted on December 20, 2016
The Cabinet has cleared a bill proposing a significant overhaul of the functioning of 12 major ports in the country, giving a nod to the Major Port Trust Authorities bill, 2016 on Wednesday.
The bill once passed by Parliament will give port boards more autonomy and flexibility.
Under the proposed bill, all future public-private partnership (PPP) operators will be free to fix tariff based on market conditions and will simply need to notify the port authority.
The board of the port authority has been delegated the power to fix rates for other port services and assets like land.The bill also proposes to empower port authorities to lease land for port-related use for up to 40 years and for non-port related use up to 20 years.
It also calls for setting up of an independent review board to look into disputes between ports and PPP concessionaires, to review stressed PPP projects and suggest measures to review stressed PPP projects and to look into complaints regarding services rendered by the private operators.
“The bill aims at giving more autonomy and flexibility to the major ports and to bring in professional approach in their governance,” a government official said.
Shipping ministry will soon introduce it in Parliament for legislative clearance.
The bill also proposes to introduce the concept of internal audit of the functions and activities of the central ports on the lines of Companies Act, 2013 along with provisions of CSR and development of infrastructure by port authority.
The new bill replaces the Major Port Trusts Act, 1963. It has also 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,” the official added. In other decisions, the Cabinet has approved amendments to the agreement between India and Tajikistan for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Source: The Economic Times
