The Union government has further diluted the provisions of a draft bill that seeks to replace a more than a century old Indian Ports Act following strident opposition from the coastal States who fear that it will erode their regulatory powers over non-major ports, a topic listed in the concurrent list of the Constitution.
The latest version of the draft bill that went through two iterations since 2020, may still rankle the States on the issue of powers and functions of the proposed Maritime State Development Council. Such a Council has been in existence for many years.
The coastal States could also baulk at the proposal to make the Adjudicatory Board set up under the Major Port Authorities Act, 2021 (that governs 11 of the 12 ports owned by the Centre) perform the role of an Appellate Tribunal for settling disputes under the proposed Indian Ports Act.
The Maritime State Development Council mechanism was introduced in the second version of the draft bill written in 2021 by the Ministry of Ports, Shipping, and waterways, to replace an earlier planned Maritime Port Regulatory Authority that was aimed at extending the Centre’s reach over ports owned by the State governments and, hence, was opposed by the States.
The Council shall make recommendations to the government on the adequacy of the existing legal framework or statutory compliances, and any amendments to the same, with a view to provide for a more efficient and conducive framework for ports; suggest measures to facilitate competition and promote efficiency in the operation of ports and to facilitate growth of the port sector; port connectivity and assessing the requirement of other infrastructure through road, rail, inland waterways transport, pipeline and conveyor.
It will formulate a national plan as a recommendatory framework for realizing the full potential of major and non-major ports in India, and assess the progress of such plan and revise such plan from time to time; issue guidelines in respect of the data or information to be collected by ports and the government and the manner of collection, storage and updation of such data or information; collect, collate, process or disseminate any information, records, data and research studies relating to ports, including the grant of public access thereto in accordance with such guidelines as may be issued by the Council; issue guidelines in respect of transparency of port tariff.
In this regard, the new version of the draft bill says that the Council will discharge its functions “in consultation with the Central government and State governments”, which was not included in the draft released last year.
The Council will be chaired by the Union Minister in the Ministry of Ports, Shipping and Waterways and comprise ministers in-charge of ports of all States and Union Territory of Puducherry, administrators of all coastal Union Territories except Union Territory of Puducherry, the Secretary in the Ministry of Ports, Shipping and Waterways, the Secretary or equivalent rank in the Indian Navy dealing with coastal security, as nominated by Union Ministry of Defence, the Secretary or equivalent rank in the Coast Guard dealing with coastal security, as nominated by Union Ministry of Defence, the Secretary in the Ministry of Home Affairs dealing with coastal security, the Secretary in the Ministry of Environment, Forest and Climate Change dealing with maritime and marine environment protection and the joint secretary (Sagarmala) in the Ministry of Ports, Shipping and Waterways, who will also act as the Member Secretary.
All questions which come up at any meeting of the Council shall be decided by the members present and voting, in such manner as may be specified by regulations, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding, shall have a second or casting vote.
The previous version of the draft had stated that “all questions which come up at Council meetings shall be decided by a majority vote of the members present and voting, and in the event of an equality of votes, the chairperson or in his absence, the person presiding, shall have a second or casting vote”.
The Appellate Tribunal will hear and settle appeals against any direction or order of the State Maritime Boards, adjudicate any dispute between two or more ports, where at least one port is not within the purview of the same State, between two or more State Maritime Boards or between one or more major port and one or more non-major port.
The Appellate Tribunal will have the powers of a civil court and an appeal against its order will lie only to the Supreme Court.
“The success of the States in attracting private funds into the ports sector, particularly in developing greenfield ports, is well documented. It is the fear of ceding this control to the Centre that is rallying the States against it,” said a port industry consultant.
