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Amendments to Major Port Authorities Bill 2016

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March 08, 2018

Why in news?

  • Union government has approved official amendments to the Major Port Authorities Bill 2016.
  • The amendments are based on the recommendations of the department related parliamentary standing committee.

What is the MPA 2016 bill about?

  • Under the Major Port Authorities Act 1963, 12 major ports had been created in India.
  • All major ports are managed by the respective Board of Port Trusts.
  • Trusts have members appointed by the central government. 
  • The MPA, 2016 Bill provides for the creation of a Board of Major Port Authority for each major port.
  • The Boards will succeed the existing Port Trusts.
  • The proposed Board will comprise of a Chairperson and a deputy Chairperson.
  • Both of them will be appointed by the central government on the recommendation of a select committee.
  • Besides, the Bill allows for more Private-Public partnership and market based tariff fixing for generating revenues.

What are the recent amendments?

  • The Cabinet has recently accepted some of the recommendations of the Standing Committee on the Bill.
  • The number of the Labour representatives to be appointed in the Port Authority Board among the serving employees of the Port has been increased from one to two.
  • This is to represent the interests of the employees.
  • The focus is also being emphasised on re-skilling the workforce.
  • After commencement of the Act, for PPP projects, the concessionaire shall be free to fix the tariff based on market conditions.
  • Presiding Officer and Members of the Adjudicatory Board shall be appointed by the Central Government.
  • This would be on the recommendations of the Selection Committee.
  • Central Government shall have the power to remove the Presiding Officer or any member of the Adjudicatory Board following the prescribed manner.

What are the existing concerns in ports?

  • Trust boards have turned into fiefdoms of bureaucrats and politicians.
  • The development of ports has suffered, with decisions not being taken in an objective, transparent manner.
  • India’s ports account for over 70% of India’s international trade by value.
  • It’s necessary to address inefficiencies such as high turnaround time of ships by stepping up modernisation and grappling with careless management.
  • Specialised cargo handling berths have a higher scope for PPP, mechanisation and improved efficiencies.

What is the significance of the bill?

  • The Bill comes as a measure for addressing the technical and governance issues in the ports.
  • It paves the way for governance reform in the management of 11 out of 12 major ports in India that now run as trusts. Notably, the Ennore port is a company.
  • The Centre acts as both regulator and service provider in these.
  • Under the provisions of the Bill, the government would only regulate the services provided by private players.
  • It will not be a service provider itself.
  • It thus addresses the issue of conflict of interest.
  • The new Bill marks an effort to promote ease of doing business.
  • With ‘authority’ status, ports will have a smaller management board.
  • This enables expedient decisions on modernisation and use of port trust lands in the public interest.

 

Source: PRS, Business Line

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