India’s draft new Ports Act ready for Cabinet approval

Monday, 25 July 2011 00:00 - - {{hitsCtrl.values.hits}}

New Delhi: The Ministry of Shipping has prepared a draft of a proposed new Ports Act amalgamating the existing two statutes governing the sector into a single piece of legislation and may soon send the proposal to Cabinet for approval.

After a thorough review, the Ministry has proposed a new Act, titled, “Indian Ports (Consolidated) Act, 2010”, a circular on the website of the Shipping Ministry said.

If the proposed legislation is enacted, both the existing Indian Ports Act, 1908, as well as Major Ports Act, 1963, will stand repealed, it said.

The proposal will go to the Cabinet for approval, following which it can be tabled in Parliament, a Shipping Ministry official said.

The Ministry was working on merging the two existing Acts with a view to simplify and streamline ports regulation in India.

At present, the Indian Ports Act, 1908, applies to all ports in the country and the Major Ports Trust Act, 1963, applies solely to the 12 major ports. The Shipping Ministry wants one comprehensive Act to regulate the sector.

The ministry has also proposed rejigging the Tariff Authority for Major Ports (TAMP).

TAMP was constituted in April, 1997, to provide for an independent authority — the Port Regulatory Authority — to regulate all tariffs, both vessel-related and cargo-related, and rates for the lease of properties in respect of major port trusts and the private operators located therein.

The Major Ports Trust Act, 1963, was amended by the Port Laws (Amendment) Act, 1997, to constitute the TAMP. Minor ports are outside the ambit of TAMP. Once the major ports are converted from trusts into corporate entities, they go out of the ambit of the Major Port Trusts Act, 1963.

There are 12 major ports in the country — Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatnam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.

Trade through the sea route accounts for about 95 per cent of total Indian trade in terms of volume and 70 per cent in terms of value.