The Hindu Business Line : Kolkata Port defers general tariff revision by another year

The scale of rates of KOPT with respect to cargo and vessel-related charges was due for revision in April 2003 since this was last revised in April 2001, which was valid for a two-year period.

New Delhi , April 19

IN the midst of a major exercise to control costs and generate additional revenues, the Kolkata Port Trust (KOPT) has decided to defer for the second consecutive time a general revision of its tariff by another year till March 31, 2005.

In an order passed recently, the Tariff Authority for Major Ports (TAMP) has allowed KOPT to extend the validity of its existing scale of rates for a further period up to March 31, 2005. Besides, the tariff regulator has permitted KOPT to continue levying a special rate at 10 per cent of the applicable charges payable by the port users for 2004-05.

The special rate was introduced in 2001-02 for a period of four years to meet the port's liability on account of arrears of salary, wages and retirement benefits arising out of various Government orders issued till December 31, 2000.

The special rate to be levied as a percentage of various charges notified in the scale of rates was prescribed at 10 per cent of the respective charges for the financial years 2001-02 and 2002-03. The quantum of special rate for subsequent periods was to be fixed after a review of the financial position at the end of the initial two-year period.

The scale of rates of KOPT with respect to cargo and vessel-related charges was due for revision in April 2003 since this was last revised in April 2001, which was valid for a two-year period.

However, based on a proposal submitted by the Port Trust, TAMP had passed an order on April 4, 2003 allowing KOPT to extend the validity of its scale of rates till March 31, 2004 and to continue levying the special rate at 10 per cent of the applicable charges for the year 2003-04.

This year, the Port Trust had again requested TAMP to extend the validity of the existing scale of rates up to March 31, 2005 while assuring that a proposal for general revision of its tariff and levy of special rate will be submitted within September this year.

The Port Trust has indicated that the measures introduced by the port have resulted in a distinct upward trend in overall traffic. The port has effected rate reduction in many areas such as berth hire, pilotage, dry dock charges, wharfage/handling charges, introduced concessional charges to Andaman-bound cargo vessels and inland vessels besides granting more free period for many categories of containerised cargo and containers.

KOPT is also considering a reduction in wharfage on empty containers and reduction in box rates for different category of containers.

"The port wants to realistically assess the needs of the trade in terms of trade as well as service before its overall pricing strategy is formalised and a specific proposal for general revision of tariff is submitted to TAMP," an official said.

The total liability of the port on account of arrears of salary, wages, pension benefits and interest payable on bank loans obtained for releasing arrears was estimated at Rs 277.89 crore till March 31, 2001. The port has discharged this liability to the extent of Rs 229.67 crore up to December 31, 2003.

The port has collected Rs 150.03 crore through the special rate up to March 31, 2004 and a further sum of Rs 127.86 crore will be necessary to meet the liability, which will have to be met from the special rate.

While agreeing to the request of KOPT for a further extension of the validity of the existing scale of rates till March 31, 2005, the TAMP has, in a gazette notification issued recently, directed the Port Trust to submit its proposal for a general review of the scale of rates as well as its proposal for review of estate rentals at Kolkata by the end of September.