Shipping Bill

The Major Port Authorities Bill, 2020

INTRODUCED BY

Introduced by

Mr Mansukh Mandaviya

Minister of State for Shipping

SYNOPSIS

The major seaport bill seeks to provide regulation, operation and planning for major ports of India based on Singapore’s PPP model. It aims to make India worlds top seaport operator.

HIGHLIGHTS

Salient Points ()

Planning and Operation

The Bill seek to provide regulation, operation and planning for all major ports.

Major ports include –  Chennai, Cochin, Jawaharlal Nehru , Kandla, Kolkata, Mumbai, New Magalore, Mormugao, Paradip, V.O. Chidambaranar, Vishakhapatnam

Formation of New Board

Creation of new board for each port suggested.

The board have members from all vested parties of state government

The board can undertake Public Private partnership projects (PPP Projects)

Powers of the Board

Powers of the board

    1. Provided full powers to enter into contracts, planning and development, fixing of tariff 
    2. Board will define the rates for assets and services available at ports
    3. Will make rules for declaring availability of port assets
    4. The board will create master plan for any infrastructure or establishments within port limits

BACKGROUND

ParticularsCurrentProposed
Ports operated by Major Port Trusts Act 1963 Each port to be managed by new Independent board
Composition of Members 17-19 members 11-13 members
Total no. of sections under the Bill/Act 13476
Rates / Tariff governing body Tariff Authority for major Ports (TAMP) New board

KEY STATS

Key Stats ()

Major Ports in India

13

Minor Ports in India

180

Fine amount for contravening any provision

Rs 1,00,000
Label

India rank in terms of tonnage (cargo carrying capacity of ship)

16th

TIMELINES

12 Mar 2020

WHY (as per the govt)

Salient Points ()

This will empower the Major Ports to perform with greater efficiency on account of full autonomy

It will decentralize decision making and infuse professionalism in governance of major ports

It will impart faster and transparent decision making benefiting the stakeholders and better project execution capability

WHY NOT (as per opposition)

Salient Points ()

The bill has been vaguely drafted.  Many points with respect to members are unclear.

Like:

7 out of 13 board members are private.

The qualification experience not mentioned in the bills.

There is unequal representation of private and employee interest.

No. of private members (4) are higher than employees’ members (2) in the board.

The current bill provides only 1-year restriction period for re-employment, which means the members can be get jobs in the same company they are regulating.

This will lead to breach of confidential information.

There is no clarity in using the port with respect to port-related and non-port related use which may lead to misuse of power.

MEDIA SAYING

VIDEOS

Videos ()

FAQs

PPP projects are projects taken up through a concession contract by the Board. And the PPP contractor is free to fix actual tariffs based on market conditions.

In a landlord port model –

  1. The publicly governed port authority acts as a regulatory body while private companies take care of port operations (mainly cargo-handling activities)
  2. Port authority has the ownership of the port and the infrastructure is leased to private firms (maintain the structure and install own equipment to handle cargo.
  3. The landlord port gets a share of the revenue from the private entity.
  4. The role of the landlord port authority would be to carry out all public sector services and operations like bids for cargo terminals, clearance from authorities etc.

SINGAPORE MODEL

Singapore converted its harbour board into port authority.

Then it separated its regulatory functions from the port authority

After the separate regulatory function, it converted it into a commercial entity through parliamentary Act

PSA International Pvt Ltd became the world’s top container port operator

Ports further converted into companies and then listed to the stock exchange

Read more interesting facts 

ORIGINAL BILL

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