Central Port Authorities Bill, 2016

In June 2016, the Shipping Ministry had released a draft Central Port Authorities Bill, 2016. At present, the major ports in India are regulated by the Major Port Trust Act, 1963. The Central Port Authorities Bill seeks to repeal and replace the existing act.

Salient Features

Board of Port Authority

The existing 1963 act provides for a Board of Trustees with about 17 to 19 members. There are no independent members in Board of Trustees. The draft bill provides for creation of a Board of Port Authority, consisted of nine members of which three to four will be independent members. Members will also include: (i) a government nominated member, (ii) a labour nominee member, and (ii) three functional heads of Major Ports.

Powers of Board

Under the 1963 act, the Tariff Authority of Major Ports (TAMP) is responsible for all port related tariffs. Under the draft Bill, the regulation of tariff by TAMP is being removed and this power is being delegated to Board of Port Authority. The Board will also be empowered to raise loans and issue security for capital expenditure and working capital requirements. It will also have the power to fix the scale of rates for services and assets, and tariffs.

Independent Review Board

The bill also proposes to form an independent Review Board to carry out the residual functions of TAMP. It will also (i) look into disputes between ports and public private partnership (PPP) concessionaries, (ii) review stressed PPP projects and suggest measures to revive such projects, and (iii) look into complaints regarding services rendered by the ports and private operators within the ports.

Land use

The draft Bill defines the usage of land for port and non-port related uses. Port Authorities will be empowered to lease land for port related uses for up to 40 years, and for up to 20 years for non-port related uses. These may be extended with the approval of the central government.

Comment

The new bill is aimed at enabling the port authorities to function like corporate entities. The major ports will be able to lease land for port-related use for up to 40 years, and for non-port related activities up to 20 years. We note here that of the 12 ports, the Kamaraj Port Ltd has already been corporatised. This is going to be a major issue and bill may face protests against leasing the port land to private parties etc.