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The Major Port Trust Authorities Bill, 2016, which the Union Cabinet has approved to replace the Major Port Trusts Act, 1963, has given significantly enhanced powers to the Port Trust Authorities, including more autonomy in taking decisions.
With the role of Tariff Authority for Major Ports (TAMP) redefined in the Bill, the Port Authority now has the powers to fix tariff, which will act as a reference tariff for purposes of bidding for PPP projects. Also, PPP operators will be free to fix tariff based on market conditions. The Board of the Port Authority has been delegated the power to fix the scale of rates for other port services and assets, including land, highlighted a communiqué.
An independent Review 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, review stressed PPP projects, suggest measures to revive such projects and look into complaints regarding services rendered by the ports/private operators operating within the ports.
The Port Authority Board has also 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 MPT Act, 1963, prior approval of the Central government was required in 22 cases.
The new Bill empowers the Board to lease land for port-related use for up to 40 years and for any purpose other than the purposes specified in Section 22 for up to 20 years, beyond which the approval of the Central government is required.
The Bill has also introduced the provisions of CSR and development of infrastructure by the Port Authority.
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