Tariff Authority for Major Ports (Tamp) expected to get the job to regulate 200-odd ports of the country. Tamp is currently responsible for fixing the tariff of 13 major ports in the country. The Shipping ministry has already began the groundwork for setting up a regulator to ensure close supervision of operations of ports which are projected to handle traffic of 2,500 million tonne by year 2020, two government officials familiar with development told FE.
The proposed regulator will have the power to frame policy guidelines on port sector and supervise their implementation. The body, which may operate independently, can also take a suo-moto action on any port or private operator of terminals if anything wrong is found in their functioning.
The need for an independent regulator in port sector has been felt as the Centre has expressed inability regulate the sector thorougly considering its rapid growth and entry of several private sector players. Though the sector comes under the jurisdiction of both the Centre and states, the bulk of responsibility falls on the Centre as regulatory structure in the form of maritime boards has not been set up by several states.
Under the new role as regulator, TAMP will be asked to ensure that operations of all ports, major or minor, in the country are as per existing policies. TAMP will also hear petitions filed by customers against the tariff of any port.
?We are going to relieve TAMP of the responsibility of fixing port tariff. This task will be done by ports themselves. TAMP will focus on regulating the sector as a whole, and function as telecom regulator TRAI. This is in line with the government’s intention strengthen TAMP as a body,? a senior official in the ministry told FE, requesting anonymity.
Earlier, the ministry had thought of coming out with provisions to this effect in the proposed integrated port policy, which will replace Indian Ports Act and Major Port Trusts Act. However, shipping secretary ordered for preparing a separate bill focusing only on giving TAMP the status of a regulator. ?We are planning to crystalise the proposal before March 31, 2011. Once that is done, we will hold discussion with stakeholders and then put up a note for Cabinet approval,? another official of the ministry said.
Meanwhile, the first official quoted earlier said the ministry is trying to introduce a draft of integrated port policy before fiscal end . This policy is important for major ports as it will allow them to fix tariff besides facilitating managerial and financial freedom.