FCC

Ports Bill being prepared to make tariffs transparent

2023-09-21

The Centre is currently developing a new legislative framework for ports. They aim to introduce transparency in port tariffs, update penalties for offenses, and replace over 110 years' worth of rules with more than 15 new sets.

It was stated by a high-ranking government official that the proposed Indian Ports Bill for 2023 is intended to replace the Indian Ports Act from 1908. The goal is to grant authority to the Maritime States Development Council (MSDC) and encourage coordinated planning between states and the Centre regarding port development.

The new legislation will assist in the more precise determination of port tariffs. According to the official, the definition of port tariffs is proposed to be broadened to encompass various components, including port duties, with a strong emphasis on transparency and deregulation.

Under the existing laws, major ports are administered by the Centre, while non-major ports fall under state jurisdiction. This control structure remains intact in the new bill. However, according to the proposal, the central government can instruct any port to implement a system for electronically integrating port-related data into a centralised system.

This recent amendment takes a moderate approach by toning down contentious provisions that appeared to encroach upon the rights of state governments, which were suggested in previous versions.

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