The ministry of surface transport is in the process of reviewing the investment and tariff fixation powers of major ports.

Admitting that "ideally, tariff fixation should be left to the market forces", Vasudevan noted that TAMP was created as a temporary measure aimed at building confidence among private investors. "But even private ports were having problems with TAMP," he said.

TAMP was set up in April 1997 after Major Port Trusts Act, 1963 was amended by Port Laws (Amendment) Act. The aim was to provide for an independent tariff authority for fixing and revising the porttariff.

Port officials are demanding changes in section 42 (4) of the Act for restoration of their tariff fixation powers. "But how far the replacement of TAMP will be acceptable to the private sector is yet to be seen," Vasudevan added.

Incidentally, corporatisation of JNPT and Ennore Port will lead to their denotification from the Major Port Trusts Act thereby taking them out of TAMP control. The ministry has fixed June-end as the deadline for their corporatisation.

As far as investment powers were concerned, Vasudevan ruled out any major changes but added, "we will take a review of the powers exercised by the ports so far. Only then a decision will be taken". In 1996-97, board of trustees of all the major ports were empowered to take investment decisions up to Rs 50 crore for addition or modification of facilities and new projects. A Rs 100-crore limit was allowed for replacement and renewal of assets.

The ministry recently raised the limit for equipment purchase by all major ports to Rs 100 crorefrom Rs 50 crore. However, such purchases have to be financed entirely through internal resources.

The administration of 11 major port is governed by the Major Port Trust Act 1963 with the ministry of surface transport exercising overall control over their working.

The 140 operational intermediate or minor ports, which take care of internal coastal trade, are administered by the concerned state governments. At present, tariff guidelines issued by TAMP act only as a ceiling, which is not binding, for these ports.