Centre asks costal states to set up regulators for small ports

The Centre has asked all coastal states to set up independent port regulators to supervise the operations of non-major ports that handle nearly 30% of the total cargo traffic in the country. The regulators would be on the lines of a proposed port regulatory authority for major ports that has to keep an eye on any discrepancies in the functioning of 13 major ports.

The regulatory bodies in states would prepare guidelines for tariff fixation and lay down performance norms for private operators. They would also suggest ways to promote investment in the sector. Ports in a state that fails to set up such an authority would come under the jurisdiction of the port authority for major ports.

Currently, minor ports are regulated by state maritime boards that also prepares guidelines on tariff fixation.The boards function as a department of the government and do not enjoy the autonomy that is proposed to be given to the new regulator.

India’s 7,500 -km coastline has nearly 200 non-major ports in eight states namely West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Maharashtra and Gujarat. These states are witnessing rapid increase in private investments in the port sector, with some non-major ports handling more traffic than major ports.

“Our idea is to ensure effective regulation of port operations in states. We have given an option to states to create an independent regulator for the sector. If they choose to not form such an entity, the proposed central port regulatory authority can guide the functioning of the ports,? Rakesh Srivastava, joint secretary in the shipping ministry, told FE.

However, the states feel that the Centre’s decision is ?unnecessary? as it may hamper the investment in non-major ports. ?It would create a needless entity as the tasks entrusted to the state port regulators are already being performed by respective maritime boards in states,? a senior official in Maharashtra Maritime Board said.

The shipping ministry says all states don’t have maritime boards and even existing boards are mostly influenced by state governments. ?Maritime boards are nothing but government entities. Moreover, all states don’t have maritime boards,? Srivastava said. Currently, only Gujarat, Maharashtra, Tamil Nadu and AP have maritime boards to govern non-major ports.