Indian Ports Association - Private Participation AREAS

Guidelines to be followed by Major Port Trust for private participation in the major ports

Regulatory Framework

The port will continue to maintain its regulatory role under Major Port Trusts Act, l963. However for purpose of fixing and revising port tariffs, an independent Tariff Regulatory Authority has been set up. The tariff so fixed would be a ceiling and both the private entrepreneurs and the port would be free to charge less than such notified tariff.

The port should ensure that private investment does not result in the creation of private monopolies, and that private facilities are available to all users on equal and competitive terms. However, in the case of berths constructed or taken on lease by private entrepreneurs, they would be permitted to give priority berthing to their own ships and they would service other ships on a first come first served basis.

The private entrepreneurs will be obliged to protect the national interests like national security whenever necessary and required, and also honour priority berthing orders of Central Government, in this regard. The private entrepreneurs will also abide by the various statutory requirements on the protection of the environment, anti-pollution measures, safety, conservancy, etc, and also abide by the directives issued by the Government/Port in this regard from time to time.

The ports will with the approval of the Central Government take steps to frame regulations under relevant sections of Major Port Trust Act consistent with these guidelines to enable private sector participation in Port Sector.

Till such regulations are framed, cases will continue to be governed by these guidelines,

Feasibility Report

In the case of identified projects for private sector participation, the ports may prepare feasibility reports either through their in house expertise or by engaging competent consultants after following the normal procedure of tendering/short listing. Approval of the Ministry of Surface Transport to undertake the feasibility study will be taken wherever necessary.

Tenders will be invited for the project based on the Feasibility Report. The cost of preparation of the Feasibility Report would be recovered from the successful tenderer.

Projects to be executed through private sector participation need not be posed for approval of the investment to EFC/PIB. Even feasibility report for such projects need not go for clearance of Committee of PIB, since the cost of feasibility reports in ultimately to be recovered from the successful tenderer.

In the case where captive facilities are desired, feasibility reports may be conducted by toe entrepreneur/P5U desirous of constructing the facility. However, the feasibility report would be seen/ scrutinised by the port to see whether it meets the port’s approval.

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