Govt to table a new bill to facilitate PPP in port sector

The government is also considering revamping the role of port regulator TAMP (Tariff Authority for Major Ports).

(Reuters)

The government is also considering revamping the role of port regulator TAMP (Tariff Authority for Major Ports).

The government will table a new bill that will facilitate a model agreement by way of Public-Private Partnership in the port sector.

"In the next two months, we will have a new model agreement, hopefully by June 30. Ministry of Shipping is coming up with a separate bill that can handle long term concessional arrangement between port and terminal operators," said Secretary, Shipping Rajive Kumar at the CEOs' Forum at the Maritime India Summit in Mumbai.

Kumar said there are several investment opportunities in the dredging and barges development as the coastal cargo movement is set to rise by 6 times in the next 10 years. To make the coastal cargo and inland cargo movement economically feasible, Kumar pointed out that duty on bunker fuel has been removed for containers, adding that the objective is to bring down bunker fuel cost further for all cargoes.

States have been requested to bring down VAT on bunker fuel and three states have responded, he said. The government is also considering revamping the role of port regulator TAMP (Tariff Authority for Major Ports). Responding to a query from the forum, Shipping Minister Nitin Gadkari said, "We want to close TAMP chapter immediately and the process is on to replace it with a new system."