All ports likely to have tariff parity soon: Milind Deora

Written By Unknown on Jumat, 05 Juli 2013 | 21.03

Having already decided to unshackle port tariffs at new major ports, the Shipping Ministry is mulling more relaxations to bring about greater parity in pricing at all ports soon, Minister of State Milind Deora said here today.

"We will come out with new rules which will create parity between the pricing at the major ports and the minor ones within a month. This is aimed to increase investments in the sector," Deora told reporters on the sidelines of an event here.

Also read: PM target's Rs 1.5 lakh cr in PPP projects in 6 months

Shipping Minister GK Vasan, who was also present, refused to give further details. He said ever since the announcement of "in-principle" decision to disband the Tariff Authority for Major Ports (TAMP) this January, the ministry has held extensive consultations with all the stakeholders, including foreign investors. "We have made note of all the concerns and accordingly the action will be taken. On a prospective basis, all the new projects will definitely enjoy to set their own tariffs, but we need to work on how an already existing project gets benefit of the decision," he said, without disclosing the exact contours about the ministry's thinking.

Deora said a "migration policy" will have to be worked out for the same, but again declined to give exact details. To boost private sector investments in state-owned ports, the ministry had taken an "in-principle" decision to abolish the tariff setting regulator's oversight for new projects in January.

With a slew of projects being given under the public private partnership mode at the major ports, wherein a private developer builds and operates a terminal for a concession period by bidding the highest revenue share, the TAMP was seen as a factor inhibiting investments.



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