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MAJOR PORTS AUTHORITY BILL, 2020

Why in news?

The Cabinet has given its nod to Major Ports Authority Bill that will replace a 1963 law governing country’s 12 major ports.

Background:

At present the ports are governed by a ports law of 1963. The major port sector has not seen the required level of fixed assets creation to pare the country’s high logistic costs owing to legacy issues including the Tariff Authority for Major Ports (TAMP)’s archaic regulatory grip.

Overview of the Bill:

  1. The proposed law is aimed at enhancing the overall efficiencies of the ports.
  2. Now ‘major ports’ will get to determine the tariffs for various port-related services as well as the terms for private developers who team up with them.
  3. Every port will now be governed by a Port Authority which will have powers to fix reference tariffs for various port services.
  4. The Bill also proposes the creation of an adjudicatory board at the apex level for review of port authority’s decisions. It will have the mandate to resolve the disputes between port authorities and the PPP operators.

Major Ports in India:

India has 12 major ports — Deendayal (erstwhile Kandla), Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia).

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