The Lok Sabha recently passed the Major Port Authorities Bill, 2020 that looks to reorient the governance model in central ports to landlord model, whereby port infrastructure is leased to private operators.
The bill aims at decentralizing decision making and to infuse professionalism in governance of major ports. The landlord model of port operation is widely followed globally.
Of the 204 ports in the country, 12 are Major Ports, including Deendayal (erstwhile Kandla), Mumbai, JNPT and Cochin.
“I am introducing the Major Port authorities bill with the vision to make major ports competent and improve their efficiencies,” Shipping Minister Mansukh Mandaviya said in the Parliament.
The bill is expected to help impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
The role of Tariff Authority for Major Ports (TAMP) has been redefined in the bill. The port authority has now been given powers to fix tariffs which will act as a reference tariff for purposes of bidding for PPP projects. PPP operators will be free to fix tariffs based on market conditions.
The Board of each major port shall be entitled to create a specific master plan in respect of any development or infrastructure established or proposed to be established within the port limits and such master plan shall be independent of any local or state government regulations of any authority whatsoever.