Indian Ports Association - Private Participation REPORT

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

Foreign Investors

Foreign investors can be considered for private sector projects if they have the necessary FIPB/ Competent Authority clearance and have been registered as a company under the Indian Companies Act or have the FIPBI Competent Authority clearance and propose to be registered as a Company under the Indian Companies Act.

Port Labour

Before tendering out for private sector participation an existing port facility, ports should examine:

(a) The labour likely co be rendered surplus.

(b) Possibility of redeploying and retraining such labour.

(c) After the above exercises, the port should identify the labour which has to be necessarily taken over with the facility and clearly bring it out in thetender document so that the intending tenders are aware of the liability.

(d) No retrenchment should be done without the concurrence of labour and only in accordance with Industrial Disputes Act/relevant labour laws. However, voluntary retirement should be encouraged. (e) The lessee would be bound by all the labour laws of the country. (f) Conditions of service of transferred labour if any would not be inferior to what they enjoyed before.

Guidelines on Lease of Land

The guidelines on private sector participation and lease of land issued vide No. PD/11013/3/89-Pvt. dated 12.04.l993. No. PT-ITOI I/55/87-PT dated OI.04.1995 and vide No. PT-ITOI I/55/87-PT dated 25.01.1996, co the extent they may be inconsistent with these guidelines, hereby stand superseded.

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