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Ministry to notify new tariff regime soon

Ministry to notify new tariff regime soon

Union Shipping Secretary, PK Sinha informed reporters that his ministry would notify the new tariff regime, which allows private container terminals to fix market-linked tariffs, within a month.

According to the existing tariff norms, port developers cannot charge more than the ceiling tariff defined by the Tariff Authority of Major Ports (TAMP).

However, the proposed new tariff regime allows container terminal operators to fix tariffs higher than the one recommended by the ports tariff regulator.

The government prepared the new tariff regime as part of its strategy towards partial deregulation of tariff setting at major ports, or ports that are under the aegis of the central government.

The shipping ministry wants to liberalise tariff regime in order to attract private investments for port development.

This year, the Shipping Ministry has set a target of awarding 30 projects to build a capacity of 287 million tonne per annum, which requires an investment of Rs 25,000 crore. The ministry could award only 32 port projects involving an investment of Rs 6,700 crore in 2011-12.

The development of JN PortÂ’s Rs 8,000 crore fourth container terminal, and similar other projects in the port sector, may get a boost from the proposed new tariff regime. NN Kumar, Chairman of the JN Port said that the bidding for the project had already begun.

JN Port has invited the request for qualification (rfq) for the project and has fixed the due date at July 19.

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