 |
 Guidelines to be
followed by Major Port Trust for private participation in the major ports
Preamble
It has been assessed that major expansion
is required in the port infrastructure sector in the country in order to handle the sea
borne traffic on account of increasing foreign and coastal trade. In order to mobilize
substantial resources required for the purpose and in order to improve efficiency,
productivity and quality of service as well as to bring in competitiveness in port
services, the port sector has been thrown open to private sector participation. This is in
consonance with the general policy of liberalisation/globalisation of economy of
Government of India. It is expected that private sector participation would result in
reducing the gestation period for setting up new facilities help bring in the latest
technology and improved management techniques.
Areas of
Privatisation
The following areas have been identified
for participation/investment by the private sector. These are indicative in nature and
individual ports can expand the scope of activities after prior consultation with Central
Government.
- Leasing out existing assets of the port.
- Construction/creation of additional assets,
such as:
(a) Construction and operation of container
terminals.
(b) Construction and operation of bulk
break bulk, multipurpose and specialized cargo berths.
(c) Warehousing, Container Freight
Stations, storage facilities and tank farms.
(d) Cranage/handling equipment.
(e) Setting up of captive power plants.
(f) Dry docking and ship repair facilities.
- Leasing of equipment for port handling and
leasing of floating crafts from the private sector;
- Pilotage.
- Captive facilities for port based
industries.
Each port may identify specific projects
for implementation through private sector participation.
Legal Framework
There is no legal bar to private sector
participation in port facilities as per the provisions of the existing Major Port Trusts
Act, 1963, as brought out below:
| Activity
|
Relevant
Section of the Major Port Trusts act 1963 |
| Lease of
port’s immovable and movable property viz. land, existing berths super
structure/equipment’s etc. (According to definition given In the MPT An, l963
"immovable property includes wharfage rights, all other rights exercisable on, over
or in respect of any land, wharf, dock or pier") |
Section 34(l)
& Section 42(3) read with Port Regulations, if any made under Section 34(2) |
| Construction/installation
of wharf, dock, quay, stage, jetty. pier erection or mooring and reclamation of foreshore
within the port limit by private parties. |
Section 46(1)read
with Section 34 |
| Performance of
any of the services to be rendered by the ports under Section 42(1) by a private party on
terms and conditions fixed with the approval of Central Government and recovery of charges
by the private party for the service rendered by them. |
Section 42(3) and
Section 42(4) |
| Lease, farm, sell
or alienate the rights of the Board to levy rates to ocher party with the approval of
Government. |
Section 57 |
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