Major Port Authorities Bill, 2020

Major Port Authorities Bill

Question: Consider the following statements:
(1) Major Port Authorities Bill,2020 seeks to replace the Major Port Trusts Act, 1963.
(2) he Bill is aimed at reorienting the governance model in central ports to landlord port model.
Of the above correct statement/s is/are:
(a) Only 1
(b) Only 2
(c) Both 1&2
(d) None of the above
Answer: (c)
Related facts:

  • On 10 February 2021, Parliament passed the Major Port Authorities Bill, 2020.
  • The bill was introduced by Mansukh Mandaviya, Minister of State (I/C) for Ports, Shipping &Waterways.
  • The bill seeks to replace the Major Port Trusts Act, 1963.
  • The Bill will apply to the Major Ports of Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V.O. Chidambaranar (Tuticorin) and Visakhapatnam.

Aim:

  • The bill aims at decentralizing decision making and to infuse professionalism in governance of major ports.
  • The Bill is aimed at reorienting the governance model in central ports to landlord port model in line with the successful global practice.
  • 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.

Key features:

  • The number of sections has been reduced to 76 from 134 by eliminating overlapping and obsolete Sections.
  • The bill proposes composition of Board of Port Authority.These Boards will replace the existing Port Trusts under the 1963 Act. The Board will comprise of (a)aChairperson; (b) a Deputy Chairperson (c) one Member each from the–– (i) concerned State Government in which the Major Port is situated; (ii) Ministry of Railways; (iii) Ministry of Defence; and (iv) Customs, Department of Revenue; (d) not less than two and not exceeding four Independent Members; (e) one Member not below the rank of Director nominated by the Central Government, ex officio; and (f) two Members representing the interests of the employees of the Major Port Authority.
  • Chairperson and Deputy Chairperson will be appointed by the Central Government on the recommendation of a Selection Committee.
  • The Boards of Port Authority have been delegated full powers to enter into contracts, planning and development, fixing of tariff except in national interest, security and emergency arising out of inaction and default. In the present MPT Act, 1963 prior approval of the Central Government was required in 22 instances.
  • The role of Tariff Authority for Major Ports (TAMP) has been redefined. Port Authority has now been given powers to fix tariff which will act as a reference tariff for purposes of bidding for PPP projects. PPP operators will be free to fix tariff- based on market conditions. The Board of Port Authority has been delegated the power to fix the scale of rates for other port services and assets including land.
  • An Adjudicatory Board has been proposed to be created to carry out the residual function of the erstwhile TAMP for Major Ports, to look into disputes between ports and PPP concessionaires, to review stressed PPP projects and suggest measures to review stressed PPP projects and suggest measures to revive such projects and to look into complaints regarding services rendered by the ports/ private operators operating within the ports.
  • The Board of each Major Port shall be entitled to create specific master plan in respect of any development or infrastructure.
  • Provisions of Corporate Social Responsibility & development of infrastructure by Port Authority have been introduced.

By-amar mani Upadhyay

Links:
http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/78%20_2020_LS_ENGLISH.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1696767