The Centre will table a new bill that will facilitate a model agreement by way of Public-Private Partnership in the port sector.
“Ministry of shipping is coming up with a separate bill that can handle long term concessional arrangement between port and terminal operators” said Rajiv Kumar, Secretary, MoS.
He added: "In the next two months, hopefully by June end, we will have a new model agreement."
Kumar, while addressing the CEO forum said there are several investment opportunities in the dredging and barges development as the coastal cargo movement is set to rise by 6 times in the next 10 years.
To make the coastal cargo and inland cargo movement economically feasible, Kumar pointed out that duty on bunker fuel has been removed for containers, adding that the objective is to bring down bunker fuel cost further for all cargoes. States have been requested to bring down VAT on bunker fuel and three states have responded, he said.
The government is also seriously considering revamping the role of the Port Regulator – TAMP (Tariff Authority for Major Ports).
Responding to a query from the forum, Union Minister for Shipping, Nitin Gadkari said, “we want to close TAMP chapter immediately and the process is on to replace it with a new system."