Guidelines for Determination of
Tariff for Projects at Major Ports Announced
Union
Minister for Shipping Mr. G K Vasan today announced
in Mumbai the new Guidelines for determination of tariff for major port
projects in the country. The new simplified guidelines are expected to pave way
for increased investment flows into the port sector.
Addressing
a press conference, Mr Vasan
said "the new guidelines allow the competitive market forces to play a
greater role in tariff determination and impart flexibility. This is a major
step forward."
The
Shipping Ministry had been contemplating to come up with new tariff guidelines
in response to feedback received from various stakeholders, who felt the
existing Tariff Authority for Major Ports’ regulations were detrimental to the
growth of the sector. It was also felt that there was no level playing field
between the major ports and the non-major ports, as the latter were outside the
ambit of TAMP.
The
Minister informed that an Inter-Ministerial Task Force headed by Member,
Planning Commission B K Chaturvedi, looked into the
issue in a holistic manner and gave its recommendations. Mr
Vasan said "the new guidelines are being issued
after extensive consultations with all the stakeholders and I hope that they
will encourage more private investment in port projects."
The
Ministry of Shipping has set an ambitious target to award 30 port projects
during 2013-14, which would add 288 Million Tons Per Annum (MTPA), with an
investment of approximately Rs 25,000 crores. This includes Rs 8000 crore big ticket project of the fourth container terminal
at the Jawaharlal Nehru Port, JNPT in Navi Mumbai.
During
2012-13 the Ministry awarded 32 port projects at an estimated cost of Rs 6,765 crores, entailing
capacity addition of 136 MTPA.
The
new guidelines for determination of tariff for projects and major ports come
into force with immediate effect. Beside
providing for tariffs to be indexed to inflation, they also set out performance
standards for port projects to improve accountability and ensure improved
quality of service. The focus TAMP will now gradually shift to performance
monitoring and redressing grievances.
Tariff
Guidelines 2013- Main Features
The Tariff Guidelines will have prospective effect. The projects already
awarded will not be covered under the new guidelines.
2005 and 2008 guidelines shall continue to apply to projects bid under them.
Tariff Authority for Major Ports, TAMP will first set
the Reference Tariff for a particular commodity at a major port. Such Reference
Tariff will typically be the highest prevailing rate that was set on the basis
of guidelines framed in 2008 for handling a particular commodity in a port.
If that commodity is not handled at that Port, highest tariff in nearest Major
Port shall be taken as Reference Tariff.
Reference Tariff so set, shall be applicable for 5 years. It will be indexed to
inflation up to 60 of Wholesale Price Index.
TAMP will also notify Performance Standards of facilities and services offered
at the port project
Both the Reference Tariff and Performance Standards shall be mentioned in the
bid document and the bids will be evaluated on the basis of Reference Tariff.
Indexed Reference Tariff would be the ceiling tariff in the first year of
operation
Operator shall be free to propose tariff higher than indexed Reference Tariff
from the second year subject to Tariff Cap of 15% over and above the indexed
Reference Tariff.
Upward revision will be allowed only once in Financial Year
Proposal for increase in tariff should be sent to TAMP, stating achievements in
Performance Standards in the previous year. These should be certified by an
Independent Engineer drawn from an approved panel.
If Performance Standards as per the Concessionaire Agreement are not achieved,
TAMP shall not consider any hike in traffic.
Revenue Sharing will be as per the Concession Agreement.
Major Port Trusts shall draw Performance Standards for the new berths,
comparable to similar PPP berths.
If PPP operator fails to achieve Performance Standards the stakeholder can make
a representation to TAMP.
TAMP will hold an inquiry and give its findings to the Major Port Trust
Major Port Trust will be bound to take action on the findings as per Concession
Agreement
[Source: PIB (Ministry of
Shipping) Press Release dated 31st July 2013]