Experts and industry watchers feel that the government must revamp the tariff structure governing major ports in the country and make them market-driven rather than being regulated by Tariff Authority for Major Ports (TAMP).
Industry players and experts suggest the government to reform the tariff regime in the port sector.
A committee set up under the Chairmanship of BK Chaturvedi, member transport, Planning Commission, said in its report that the immediate priority is the amendment to the Major Port Trusts Act.
The panel was of the view that the current tariff fixation mechanism has “proved to be inefficient compared to the determination of tariff by market forces in the non-major ports sector (outside Union government control).
Hence, tariff regulation by TAMP needs to be discontinued. The shipping ministry may take steps for amending the Major Port Trusts Act so that tariffs at major ports (those controlled by the Union government) are determined by competitive market forces, the task force wrote in its July 2012 report.
However, the ministry decided to frame a new set of simplified guidelines to deregulate port rates pending an amendment to the Major Port Trusts Act, which is considered a time-consuming exercise, reports indicate.
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