• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

P. Manoj

"The major port trusts, may, if they so desire, charge lower rates and/or allow higher rebates and discounts to compete with others," the TAMP order said.

New Delhi , Sept. 8

FROM now on major port trusts can compete with private operators by charging reduced rates and by offering higher rebates and discounts than the scale of rates approved by the Tariff Authority for Major Ports (TAMP).

In a gazette notification issued on September 2, the tariff regulator for major ports has stated that the rates prescribed in the scale of rates approved by the authority for major port trusts would be merely ceiling levels. Similarly, the rebates and discounts would only be floor levels.

"The major port trusts, may, if they so desire, charge lower rates and/or allow higher rebates and discounts to compete with others", the TAMP order said.

This flexibility to charge reduced rates than the one approved by TAMP was so far available only to private operators at major ports. Though there was no legal restriction in charging reduced rates, the major port trusts have so far shied away from levying lower rates to stave-off queries from the Comptroller and Auditor-General and Parliament.

The need to impart necessary flexibility in charging reduced rates and give higher discounts and rebates to compete with private operators was endorsed by TAMP on a policy direction issued by the Ministry of Shipping under Section 111 of the Major Port Trusts Act, 1963.

"TAMP fully endorses the policy direction given by the Ministry since it would give the required flexibility to the major port trusts", the notification stated.

To implement the Government policy, TAMP, in its order, has inserted a general conditionality in all approved scale of rates of all major port trusts to prescribe that the rates and the discounts/rebates contained therein are ceiling and floor levels respectively.

"This arrangement will apply to the existing rates as well as the rates to be fixed in future", TAMP has said.

Commenting on the TAMP order, Dr Jacob Thomas, Chairman, Cochin Port Trust said: "This will lead to better services at cheaper rates for the customers."

The TAMP order has made it explicit that major port trusts can charge lower rates and offer higher rebates and discounts than the scale approved by the authority without entailing any problems.

"This is a very positive step especially when major port trusts are competing with each other, private operators, minor ports and even ports in neighbouring countries like Colombo and Singapore for traffic", Dr Thomas said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Concor to set up another terminal at Kolkata port

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line