The Government has begun the process of de-regulating port tariff, according to Milind Deora, Minister of State for Shipping.
Addressing a seminar on ‘Last 50 years of Indian Shipping’ here on Thursday, he said the Shipping Ministry is fast moving towards ensuring a market-determined tariff at major ports. “This would be a major economic reform in the port sector,” he added.
Currently, charges at the government-controlled ports including the private terminals operating there are fixed on the basis of guidelines issued by Tariff Authority for Major Ports (TAMP). This has resulted in disputes and litigations at several ports, particularly where terminals are run by private parties.
Recently, the Shipping Ministry has released a draft guideline linking tariff to market forces, which would be applicable to all future projects.
However, the Ministry is yet to find a solution to problems faced by terminals which are governed by 2005 guidelines. Rates at these terminals have been cut by TAMP as they handle more cargo and earn higher revenue.
Even the new guidelines would not strictly ensure market–related rates. TAMP will continue play a major role in determining the rates. While the guidelines aim at moving towards market linked pricing, the process of setting the actual tariff goes back to the system of TAMP control, said a private terminal operator.
Referring to the topic of the seminar, held as part of the 50 the National Maritime Day celebration, the Minister said India has a long way to go to regain its past maritime glory. The share of Indian ships in the country’s own international cargo has come down from 40 per cent to eight per cent. India imported 160 million tonnes of crude in 2011 and the large share of it was carried by foreign ships. From the point of view of the country’s energy security, this is not a comfortable situation, he said.
The Minister has asked all stakeholders to work together to increase India’s shipping tonnage. Earlier, Deora inaugurated an exhibition organised by SMM India as part of the Maritime Week celebration.
Policy on Light Houses
The Minister said he would be announcing a policy on making Light Houses as tourist destinations. There are more than 180 light houses along the Indian coast and these would be opened to tourists.