The Hindu Business Line : Validity extended on interim rates for Chennai box terminal

THE Tariff Authority for Major Ports (TAMP) has extended the validity of the interim rates of the Chennai Container Terminal Ltd (CCTL) from January 31, 2004, to March 31, 2004, or effective date of implementation of the revised scale of rates, whichever is earlier.

TAMP had passed an order on November 27, 2003, approving, on an interim basis, an across-the-board increase of 17 per cent over the then existing scale of rates of CCTL run by P&O Ports.

The order followed a policy direction issued by the Shipping Ministry to TAMP to revise tariffs of CCTL taking into account royalty/revenue share as cost for tariff fixation subject to a maximum of 27 per cent out of the total revenue share of 37.128 per cent paid by CCTL from its annual gross revenues to Chennai Port Trust as per the concession agreement for operating the terminal.

The validity of the interim rates was till January 31, 2004, or till a final order was passed by TAMP on a tariff revision proposal filed by CCTL, whichever is earlier. CCTL was advised to submit its proposal for tariff revision on or before December 15, 2003.

Accordingly, CCTL had filed a proposal on December 4, 2003, for a comprehensive revision of its tariff and has requested the authority to extend the validity period of the interim rates till the final order is passed. "Since the CCTL proposal on comprehensive review of its tariff is under consultation process, disposal of the proposal is likely to take some more time. It is, therefore, necessary to extend the validity of the interim rates approved by this authority till March 31, 2004, or effective date of implementation of the revised scale of rates, whichever is earlier," a Gazette notification issued by TAMP said.