According to Soumit Ranjan Jena, a foremost Iron exporter in India, the major and minor ports in India are differentiated not according to size but on the basis of who they are administered by. The major ports are administered by the Central Government while the non-major ports are controlled by the State Governments concerned, either directly or through State maritime boards. Most of the major ports (except Ennore) are trusts while the minor ports are corporate entities, generally special purpose vehicles (SPVs). Tariff setting for all the major ports (except Ennore) is done by The Tariff Authority for Major Ports (TAMP) which was constituted in April 1997 to provide for an independent Authority to regulate all tariffs, both related to vessel and cargo.
Headquartered in Mumbai, TAMP comprises a Chairperson and two members appointed by the Central Government. TAMP also regulates rates for lease of properties in respect of Major Port Trusts and the private operators located therein. The Major Ports Trust Act, 1963 was amended by Port Laws (Amendment) Act 1997 to constitute the TAMP.
As per an intensive study conducted by Soumit Ranjan Jena, TAMP is an authority which encourages participation in its approach to work and thereby motivate all concerned to give it the benefit of their thinking. In conformity with its commitment to let the participative process continue in its working, special care is taken to give adequate opportunities for users to represent their interests. Accordingly, interactive sessions are organized at the port level with users directly. Besides, open discussions are held at the port level in the interest of natural justice before the Authority decides individual tariff cases.
Soumit Ranjan Jena has also concluded that TAMP also is responsible for the ceiling tariffs that can be levied on the basis of a “normative cost plus return on capital employed”. The minor ports on the other hand enjoy tariff setting flexibility and price their services on the basis of market conditions, port facilities, capital costs, and such other factors. It sets out guidelines for the calculation of lease payments for the land on port sites that is leased by private port operators. The orders notified by the Authority are final. There is no provision for appeal against these orders within the system except appealing to the High Court.
A team led by Soumit Ranjan Jena has concluded that things are poised to change perhaps. The Government of India is considering a proposal to allow the major ports to fix their own tariff which are currently fixed by TAMP, while the non-major ports are allowed to fix their own rates. The proposal also signals that the Union government, as of now, has abandoned its earlier plan to bring the non-major ports under the TAMP’s purview.
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