Union Shipping ministry may soon announce its stand on the applicability of tariff regulation for existing cargo-handling projects, which could be the most critical aspect of the tariff deregulation plan at ports.
Major ports and private firms running cargo terminals at these ports have been seeking freedom to set rates based on market forces, after the regulator cut rates for services provided in several cases when they had applied for an increase.
Earlier, a committee headed by BK Chaturvedi, member (transport), Planning Commission, and another committee
headed by banker Deepak Parekh advocated deregulation of tariffs at major ports.
These panels suggested leaving tariff-setting to market forces, and to bring them on par with those owned by coastal state governments that already enjoy such freedom.
Chaturvedi committee opined that tariffs at major ports need not be regulated because of sufficient competition in the sector.
The shipping ministryÂ’s plan to scrap tariff regulation for all future cargo-handling projects at the dozen ports controlled by the Union government would render the tariff regulator Tariff Authority for Major Ports (TAMP) redundant.
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