The Ministry of Ports, Shipping and Waterways (MOPSW) has issued a draft of the Migration of Tariff Guidelines, 2024, for comments. The guidelines are for adoption of Market Determined Tariff for PPP projects under Guidelines for Regulation of Tariff 2005, Guidelines for Upfront Tariff Setting for PP Projects 2008, Guidelines for Determination of Tariff for Projects 2013 & Tariff Guidelines 2019.
In the past, tariffs were regulated due to a limited competitive landscape, but the evolving market necessitated deregulation. The migration was deemed pertinent since, with the transition to the land-lord port model and increased private sector participation, the utility of tariff regulations (and fixation) had diminished. In addition, intra-port parity and competition, parity with respect to non-major ports, consistent user experience and a level playing field for PPP operators dictated this transition.
To address this disparity, a committee was formed by the MOPSW for deliberation regarding the migration of existing PPP concessionaires to a market-driven tariff regime as prescribed in Tariff Guidelines 2021.
