## Report on the Major Port Authorities Application of Money in Sinking Fund Rules, 2021
**1. Executive Summary:**
This report analyzes the "Major Port Authorities Application of Money in Sinking Fund Rules, 2021," a new policy enacted by the Central Government under the Major Port Authorities Act, 2021. The core purpose of these rules is to govern the management and utilization of sinking funds established by Major Port Authorities for servicing or liquidating loans. Key provisions address contributions to the sinking fund, its utilization, and annual examination by the Comptroller and Auditor General of India. The policy aims to ensure the prudent management of funds dedicated to debt repayment, safeguarding the financial stability of Major Port Authorities.
**2. Introduction:**
This report provides an overview of the "Major Port Authorities Application of Money in Sinking Fund Rules, 2021," based solely on the official gazette notification provided. The analysis will cover the policy's objective, key provisions, target audience, implementation aspects, and expected outcomes as discernible from the text.
**3. Policy Overview:**
* Core Objective(s): The core objective of these rules, as inferred from the text, is to establish a framework for the application of money in sinking funds held by Major Port Authorities, specifically regarding contributions to, utilization of, and examination of these funds to service or liquidate loans, under subsection 1 of section 40 of the Major Port Authorities Act, 2021.
**4. Background and Rationale:**
* Since this is a New Policy: The policy likely addresses the need for a standardized and regulated approach to managing sinking funds held by Major Port Authorities. The Major Port Authorities Act, 2021, provides the legislative framework, and these rules provide the operational guidelines for how these funds are handled, ensuring financial security for ports within the new act's framework. The absence of specific rules could lead to inconsistent practices and potential mismanagement of funds, thereby potentially destabilizing Port Authorities ability to meet it's loan obligations.
**5. Key Provisions:**
The "Major Port Authorities Application of Money in Sinking Fund Rules, 2021" establishes the following main provisions:
* **Rule 1: Short title and commencement:** The rules are named "Major Port Authorities Application of Money in Sinking Fund Rules, 2021" and come into force on the date of their publication in the Official Gazette (November 23, 2021).
* **Rule 2: Definitions:** Defines key terms:
* "Act" refers to the Major Port Authorities Act, 2021.
* "Appointed day" refers to the date the Act comes into force.
* "Sinking fund" is defined as the sum set apart by the Board to service/liquidate its loans under subsection 1 of section 40 of the Act.
* **Rule 3: Contribution to sinking fund:** The Board is required to set apart sums for the sinking fund on a monthly, quarterly, half-yearly, or annual basis.
* **Rule 4: Utilisation of sinking fund:** The Board must hold the sinking fund in trust for the purposes of the Act. Funds must be invested in public securities or other investment options approved by the Central Government.
* **Rule 5: Examination of sinking fund:**
* The sinking fund is subject to annual examination by the Comptroller and Auditor General of India (CAG) or their appointed representative.
* The examiner must verify if the cash and current market value of the securities match the amount that should have accumulated given regular investment and the originally estimated interest rate.
* The Board must pay any certified deficiency into the sinking fund.
* If the sinking fund has an excess, the CAG or their appointed representative will certify the amount, and the Board can:
* Withdraw the excess amount invested.
* Transfer securities or cash and securities to the Board.
* Reduce or discontinue contributions to the sinking fund.
* Adopt a combination of these measures.
**6. Target Audience and Stakeholders:**
Based on the text, the direct target audience and stakeholders are:
* **Major Port Authorities:** These rules directly impact their financial management practices related to loan servicing and liquidation.
* **The Board (of each Major Port Authority):** The rules define their responsibilities in managing the sinking fund.
* **Comptroller and Auditor General of India (CAG):** They are responsible for the annual examination of the sinking funds.
* **Central Government:** They approve investment options for the sinking fund.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** Major Port Authorities, their respective Boards, and the Comptroller and Auditor General of India (CAG) are the key responsible bodies.
* **Timelines/procedures:** While specific timelines for contributions are not mandated (monthly, quarterly, half-yearly, or annual basis is allowed), the annual examination by the CAG provides a specific timeframe for review and potential adjustments.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these rules are:
* Improved financial discipline and transparency in the management of sinking funds by Major Port Authorities.
* Enhanced security of funds dedicated to loan servicing and liquidation.
* Standardized practices across all Major Port Authorities regarding sinking fund management.
* Greater accountability through the annual examination process conducted by the CAG.
* Reduction of risk associated with loan repayment obligations of the Major Port Authorities, helping to ensure fiscal solvency.
**9. Conclusion:**
The "Major Port Authorities Application of Money in Sinking Fund Rules, 2021" provides a critical framework for the management of sinking funds by Major Port Authorities. By establishing clear guidelines for contributions, utilization, and oversight of these funds, the policy aims to enhance financial stability and accountability within the port sector. Its implementation is crucial for ensuring the long-term financial health and operational efficiency of Major Port Authorities.
Key Entities Referenced
Ministry of Ports, Shipping and Waterways: The ministry responsible for the notification.
New Delhi: The location of the notification, likely referring to New Delhi, Delhi, India.
Major Port Authorities Act, 2021: The act under which the rules are being made. (Act No. 1 of 2021)
Central Government: The governing body making the rules.
Major Port Authorities Application of Money in Sinking Fund Rules, 2021: The name of the rules being established.
Official Gazette: The official publication where the rules will be published.
Board: Refers to the port authority board, responsible for managing the sinking fund.
Comptroller and Auditor General of India: The authority responsible for the annual examination of the sinking fund.
VIKRAM SINGH: Jt. Secy. who signed the notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-23112021-231308
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 666] नई दिल्ली, मगं लवार, नवम्ब र 23, 2021/अग्रहायण 2, 1943
No. 666] NEW DELHI, TUESDAY, NOVEMBER 23, 2021/AGRAHAYANA 2, 1943
पत्त न, पोत पररवहन और िलमाग ग मत्रं ालय
अजधसचू ना
नई दिल्ली, 22 नवम्बर, 2021
सा.का.जन. 825(अ).—केंद्रीय सरकार, महापत् तन प्राजधकरण अजधजनयम, 2021 (2021 का 1) की धारा 40 की
उपधारा (3) के साथ परित धारा 71 की उपधारा (1) द्वारा प्रित् त िजत येा ं का प्रयोग करत े हुए जनम्न जलजखत जनयम
बनाती ह,ै अथागत ्:-
1. सजं िप्त नाम और प्रारंभ – (1) इन जनयमों का संजिप् त नाम महापत् तन प्राजधकरण (जनिेप जनजध म ें धन उपयोिन)
जनयम, 2021 ह ै।
(2) ये रािपत्र म ें उनके प्रकािन की तारीख को प्रवृत् त होंगे ।
2. पररभाषाए ं :- इन जनयमों म,ें िब तक संिभग स ेअन् यथा अपेजित न हो, अथागत्:-
(क) “अजधजनयम” स े महापत् तन प्राजधकरण अजधजनयम, 2021 (2021 का 1) अजभप्रेत ह;ै
(ख) “जनयत दिन” स े वह दिन अजभप्रेत ह ैजिसको अजधजनयम, प्रवृत् त होता ह;ै
(ग) “जनिेप जनजध” स े अजधजनयम की धारा 40 की उपधारा (1) के अधीन उसके ऋणों के समापन या बोडग की
6760 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
सेवा हते ु पृथक रखी गई राजि या राजियां, जिसके अंतगगत अजधजनयम की धारा 40 की उपधारा (2) म ें
जनर्िष्ग ट दकसी जनिेप जनजध का भाग बनन े वाली राजियां भी ह,ैं अजभप्रेत ह ैं ।
(2) उन िब्ि ों और पिेां को िो इन जनयमों म ें प्रयु त ह ैं और पररभाजषत नहीं ह,ैं ककंतु अजधजनयम म ें पररभाजषत
ह,ैं वहीं अथ ग होंगे िो उनके उस अजधजनयम म ेंह ै।
3. जनिपे जनजध को अजभिाय – अजधजनयम की धारा 40 की उपधारा (1) के अधीन जनिेप जनजध के रुप म ें बोड ग द्वारा पथृ क
रखी गई राजि या राजियां माजसक, जतमाही, अर्द्वग ार्षगक या वार्षगक आधार पर पथृ क रखी िाएंगी ।
4. जनिपे जनजध का उपयोग – बोडग, अजधजनयम के प्रयोिनों के जलए न् यास म ें जनिेप जनजध रखगे ा और उसकी जनजधया ं लोक
प्रजतभूजतयों म ें या ऐसी अन् य प्रजतभूजतयों या जवजनधान जवकल प् ों िो समय-समय पर केंद्रीय सरकार द्वारा अनुमोदित दकए
िा सकेंगे, जनिेप दकया िाएगा ।
5. जनिपे जनजध की परीिा – (1) दकसी ऋण के समापन हते ु स्ट् थाजपत जनिेप जनजध भारत के जनयंत्रक और महालेखा
परीिक या ऐसा अन् य व् यजत िो इस जनजमत् त उसकी ओर स े जनयुत दकया िा सके, द्वारा वार्षगक परीिा की ितग के
अधीन होगा ।
(2) भारत का जनयंत्रक और महालेखा परीिक या उसके द्वारा उपजनयम (1) के अधीन जनिपे जनजध की परीिा के
संबंध म ें जनयुत दकया गया कोई व् यजत यह सुजनज चत करेगा दक जनिेप जनजध म ें िमा प्रजतभूजतयों का चालू बािार मूल् य
और नकि जनयजमत रुप स े दकए गए जवजनधान द्वारा संजिप् त रकम के वस्ट् तुत: बराबर ह ै और उस पर मलू त: प्राकजथत ब् याि
की िर अजभप्राप् त की गई थी ।
(3) बोडग जनिेप जनजध या जनजधयों की वार्षगक परीिा संचालन हते ु उपजनयम (1) के अधीन भारत के जनयंत्रक
महालेखापरीिक या उसके द्वारा जनयुत दकसी व् यजत द्वारा अजधप्रमाजणत कम रकम का संिाय तुरंत जनिेप जनजध म ें
करेगा।
(4) यदि जनिेप जनजध म ें िमा प्रजतभूजतयों का चाल ू बािार मल्ू य और नकि उस रकम स े अजधक ह ै िो उसके खात े
में िमा होना चाजहए था, भारत का जनयंत्रक महालेखापरीिक या उपजनयम (1) के अधीन उसके द्वारा जनयुत कोई व् यजत
इस अजधक रकम का अजधप्रमाणन करेगा और बोड,ग --
(क) जनयम 5 के अधीन जवजनधान की गई अजधप्रमाजणत अजधक संपणू ग रकम या उसके दकसी भाग को अंतररत कर
सकेगा या बोडग को अपेजित चालू बािार मूल् य की प्रजतभूजतयों को तुरंत अंतररत कर सकेगा या बोडग को
अपेजित वतगमान बािार मल्ू य की प्रजतभूजतयां और नकि अतं ररत करेगा; या
(ख) अजधजनयम या इन जनयमों के अधीन जनिेप जनजध म ें माजसक या जतमाही या अर्द्वग ार्षगक या वार्षगक
अजभिायों को बंि या कटौती कर सकेगा; या
(ग) इन जनयमों के दकसी समूह को अपनाएगा ।
[फा. स.ं पीडी-24015/21/2021-पीडी-I]
जवक्रम ससंह, संयु त सजचव[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
MINISTRY OF PORTS, SHIPPING AND WATERWAYS
NOTIFICATION
New Delhi, the 22nd November, 2021
GSR. 825(E).—In exercise of the powers conferred by sub-section (3) of section 40 read with sub-section
(1) of section 71 of the Major Port Authorities Act, 2021 (1 of 2021), the Central Government hereby makes the
following rules, namely:-
1. Short title and commencement.—(1) These rules may be called the Major Port Authorities (Application of
Money in Sinking Fund) Rules, 2021.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions.—(1) In these rules, unless the context otherwise requires,--
(a) “Act” means the Major Port Authorities Act, 2021 (1 of 2021);
(b) “appointed day” means the date on which the Act comes into force;
(c) “sinking fund” means the sum or sums set apart by the Board to service or liquidate its loans under
sub-section (1) of section 40 of the Act and include the sums forming part of any sinking fund
referred to in sub-section (2) of section 40 of the Act;
(2) Words and expressions used and not defined in these rules but defined in the Act, shall have the meaning
respectively assigned to them in the Act.
3. Contribution to sinking fund.— The sum or sums to be set apart by the Board as sinking fund under sub-section
(1) of section 40 of the Act shall be set apart on a monthly, quarterly, half-yearly or annual basis.
4. Utilisation of sinking fund.— The Board shall hold the sinking fund in trust for the purposes of the Act and the
funds thereof shall be invested in public securities or in such other securities or investment options as the Central
Government may approve from time to time.
5. Examination of sinking fund.— (1) The sinking fund established for the liquidation of any loan shall be subject to
annual examination by the Comptroller and Auditor General of India or such other person as may be appointed by
him in this behalf.
(2) The Comptroller and Auditor General of India or any person appointed by him in connection with the
examination of sinking fund under sub-rule (1) shall ascertain whether the cash and current market value of the
securities at the credit of the sinking fund are actually equal to the amount which would have been accumulated had
investment been regularly made and had the rate of interest as originally estimated been obtained thereon.
(3) The Board shall pay forthwith into the sinking fund any amount which the Comptroller and Auditor
General of India or any person appointed by him under sub-rule (1) to conduct the annual examination of the sinking
fund or funds may certify to be deficient.
(4) If the cash and the current market value of the securities at the credit of the sinking fund is in excess of
the amount which should be at its credit, the Comptroller and Auditor General of India or any person appointed by
him under sub-rule (1) shall certify the amount of this excess, and the Board may –
(a) withdraw the whole or any part of the certified excess amount invested under rule 5, shall forthwith
transfer securities of the requisite current market value, or cash and securities of the requisite current
market value, to the Board; or
(b) reduce or discontinue the monthly or quarterly or half yearly or yearly contributions to the sinking fund
under the Act and these rules; or
(c) adopt a combination of these measures.
[F. No. PD-24015/21/2021-PD-I]
VIKRAM SINGH, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.