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P. Manoj

NEW DELHI, April 14

A HIGH-LEVEL committee set up by the Ministry of Shipping to draft guidelines on the land policy to be followed by the major port trusts has submitted its first set of recommendations to the Government.

The recommendations of the seven-member committee headed by Mr R.B. Budhiraja, Chairman, Jawaharlal Nehru Port Trust (JNPT), cover the norms to be adopted on land in customs-bound area and land outside customs-bound area for both fresh allocations as well as existing leases.

The committee has recommended that sale or lease should not be permitted for fresh allocations of land in customs-bound area.

Instead, the committee has suggested that fresh allocations of land should be given on licence basis only and that too for a maximum period of 11 months and in accordance with the Schedule of Rates (SoR), as per a document submitted by the committee.

For existing leases of land in customs-bound area, the port trust concerned should first identify whether land is required for the same purpose.

"If it is so required and if renewal is unavoidable under the existing lease agreement, it should be renewed for as short a period as possible and preferably in accordance with the Schedule of Rates," the committee has recommended.

If there is no option for renewal in the existing lease agreement, it should be treated as a fresh allocation.

If lease is given in customs-bound area, the entire amount should not be recovered upfront. This will have to be collected through annual rentals which should not be a token one.

Moreover, existing build, operate and transfer (BOT) operators can be given additional facilities on licence basis in accordance with the Schedule of Rates at the discretion of the port trust. For land outside the customs-bound area, the committee has suggested that land can be allocated either on licence or lease basis.

"Lease of up to 30 years can be given by the port trust after the board's approval. But, prior approval of the Shipping Ministry would be required for lease above 30 years and for a maximum period of up to 99 years," the committee has recommended. The lease of land outside customs-bound area should be given by inviting tenders. However, exceptions can be given in the following cases.

Lease of land to Government departments for non-commercial purposes in accordance with the Schedule of Rates.

Lease of land to Central as well as State public sector undertakings for commercial purposes at the discretion of the port trust for port-related uses in accordance with the Schedule of Rates. However, such allocations should be for the exclusive use of Central and State PSUs and not for any joint ventures entered into by them with private parties.

An existing lesse can be given small contiguous land in accordance with the Schedule of Rates. If there is more than one contiguous lesse to the land proposed to be allocated, spot quotations should be invited from them.

However, in no case, land should allotted below the Schedule of Rates, the committee has recommended.

The committee was of the view that the guidelines being drafted on land policy should enable individual port trusts to leverage land to evolve as logistics centres.

The proposed guidelines will not be applicable to BOT projects. Further, every port trusts should formulate a land use plan for 20 years which will have to be updated every five years with the approval of the board. All land allotments by the port trusts should be in tune with the land use plan.

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