Ports: Address regulatory discrepancies

Anil Sardana, MD, Tata Power

Infra projects in the country do seem to have been languishing in recent times. As far as the port sector is concerned, too many Policies/Bills/Acts are in the ‘draft/consultation’ stage. The wait and watch situation appears to be prolonged.

While IPPTA has not submitted any Budget Memorandum for 2012-13, the issues remain, and need to be addressed:

• There is no clarity on service tax char­ged on royalty payments made by the private operators, on cargo handling services provided within a port, on dre­dging activity (land excavation does not attract service tax).
• Whereas capital goods for construction of roads are exempted from customs duty, port construction equipment is subject to duties.
• Territorial jurisdiction of the GST legislation is not clear.
• DTC and its effect still remain in a state of pregnant-pause since its implementation date is not known.
• The much discussed tax-free bonds introduced last year with lot of fanfare remained a non-starter.
• Increased export duty on iron ore and reduced import duty on coal has put the bulk terminals in the country in a tizzy. Long-term investment plans in this sector have gone haywire with terminals now fighting for coal cargo.