The Major Port Authorities Bill 2020

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The Major Port Authorities Bill 2020

The Major Port Authorities Bill 2020

The Major Port Authorities Bill, 2020 was introduced in Parliament replacing the Major Port Trusts Act, 1963 which has recently been passed in the Rajya Sabha by 84 votes against 44 votes. The bill aims to make world-class ports and provide decision-making power for port officials. The bill was first introduced in the Lok Sabha in 2016, and then referred to the Parliamentary Standing Committee (PSC).

Objective:

  • Decentralization of decision-making process and inclusion of professional attitude in administration of major ports.
  • Enhance the ability of all stakeholders and, in a better way, to implement the project through a fast and transparent decision making process.
  • Reconfiguration of the governance model to the central ports as landlord port models in line with successful global practices.

Proposals made in the Major Ports Authority Bill:

  • The proposed legislation aims to increase the overall efficiency of the ports.
  • Now the big ports will be able to set tariffs for various services related to the port and also put conditions for private manufacturers willing to work with them.
  • Each port will be administered by a port authority which will have the power to fix tariffs for various port services.
  • According to the Bill, a Board of Justice will be constituted at the highest level to review the decisions of the Port Authority, which will have the power to resolve disputes arising between the Port Authorities and PPP operators.
  • Provision has been made to provide salaries and allowances and conditions of service including the pension benefits of the employees of the major ports and protection of the Tailor of the major ports.
  • The Bill proposes to set up a ‘Major Port Authority Board’ for each major port.
  • Further, the Bill proposes to create an Adjudicatory Board, which will replace the existing tariff authority under the 1963 Act.

Challenges:

The Bill may encourage privatization of the shipping and ports sector.

There is no clarity about the selection committee appointing the chairman of the board of judges.

What are the major ports of India?

Currently, there are 12 major ports in India – Deendayal (formerly Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (formerly Ennore), VO Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia).

Source – The Hindu

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