Parliament Passes Landmark Major Port Authorities Bill, 2020
The Bill focuses on reorienting the governance model in central ports
in line with the successful global practices
Parliament on 10 February 2021
passed the Major Port Authorities Bill, 2020. Mansukh Mandaviya,
Minister of State (I/C) for Ports, Shipping &Waterways moved the bill in Rajya Sabha today and it was passed. Now the Bill will go to
the President of India for his assent.
With a view to promote the expansion
of port infrastructure and facilitate trade and commerce, the Major Port Authorities
Bill 2020 bill aims at decentralizing decision making and to infuse professionalism
in governance of major ports. It imparts faster and transparent decision making
benefiting the stakeholders and better project execution capability. The Bill is
aimed at reorienting the governance model in central ports to landlord port model
in line with the successful global practice. This will also help in bringing transparency
in operations of Major Ports. This will empower the Major Ports to perform with
greater efficiency on account of full autonomy in decision making and by modernizing
the institutional framework of Major Ports.
The salient features of
the Major Port Authorities Bill 2020 are as under: -
a.
The Bill
is more compact in comparison to the Major Port Trusts Act, 1963 as the number of
sections has been reduced to 76 from 134 by eliminating overlapping and obsolete
Sections.
b.
The new Bill
has proposed a simplified composition of the Board of Port Authority which will
comprise of 11 to 13 Members from the present 17 to 19 Members representing various
interests. A compact Board with professional independent Members will strengthen
decision making and strategic planning. Provision has been made for inclusion of
representatives of State Government in which the Major Port is situated, Ministry
of Railways, Ministry of Defence and Customs, Department
of Revenue as Members in the Board apart from a Government Nominee Member and a
Member representing the employees of the Major Port Authority.
c.
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.
d.
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.
e.
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.
f.
The Board
of each Major Port shall be entitled to create specific master plan in respect of
any development or infrastructure.
g.
Provisions
of CSR & development of infrastructure by Port Authority have been introduced.
h.
Provision
has been made for safeguarding the pay & allowances and service conditions including
pensionary benefits of the employees of major ports