As states? reluctance to setting up an independent regulator for ports is unlikely to end in the near future, shipping ministry is considering an alternative route.
The ministry is internally discussing establishment of a tribunal that would act as a quasi-judicial body to settle disputes arising out of major ports. Since the tribunal?s jurisdiction is restricted to major ports which are controlled by the Centre, no consultation is required with states that are in-charge of minor ports.
An independent regulator, on the other hand, would have wider implications for the sector as it would have powers to frame guidelines and supervise their implementation across all ports.
It could also take suo-moto action against any port or private operator if discrepancy is found. Of course, there is a caveat that the minor ports would be regulated by the independent regulator at the Centre only if states fail to set up similar bodies. There are 13 major ports and 187 minor ports spread at 7,500-km long Indian coastline.
The proposed tribunal would hear appeals against the orders of Tariff Authority for Major Ports (TAMP), which is currently the highest institution in the government to hear disputes on ports. Shipping ministry wants to set up the tribunal as an appellate authority over TAMP to try and settle any disagreement before the involved parties approach courts.
?A decision on regulator is taking time. So we are thinking whether we can set up a tribunal to settle disputes till the time regulator comes up,? shipping secretary K Mohandas told FE. Sources said the proposal has been crystallised and a cabinet note would be moved among ministries shortly.
Shipping ministry is trying to convince stakeholders on the matter of regulator but some maritime states are opposed to the idea, fearing loss of freedom of ports that may lead to lower efficiency and profits. Gujarat chief minister Narendera Modi had even written to Prime Minister Manmohan Singh to persuade shipping ministry against creation of any more regulatory bodies.
The matter is under discussion of a committee under chairmanship of joint secretary (ports) Rakesh Srivastava. ?The picture on regulator would be clear this week after a meeting with the stakeholders to discuss their concerns,? Srivastava said.