Home India Tariff Authority for Major Ports In exercise of the powers conferred by Section 48 of the Maj...
Date: 2016-02-05 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by Section 48 of the Major Port Trusts Act, 1963 38 of 1963, the Tariff Authority for Major Ports hereby fixes the wharfage charges for shipment of iron ore fines from Jetty No. 8 by the Kudremukh Iron Ore Company

Issued by Tariff Authority for Major Ports · NOT available

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Executive Summary & Key Takeaways

Executive Summary: This document, issued by the Tariff Authority for Major Ports, addresses the fixation of wharfage charges for iron ore fines shipped by Kudremukh Iron Ore Company Limited (KIOCL) through New Mangalore Port Trust (NMPT) Jetty No. 8 during the year 2014-15. It approves a wharfage rate based on an agreed methodology between NMPT and KIOCL. The order was passed on January 15, 2016. Key Points / Main Content: Wharfage Charge Fixation: The wharfage charges for shipment of iron ore fines from Jetty No. 8 by KIOCL through NMPT during 2014-15 are fixed as per the order appended to the notification. The determination of wharfage rates follows Section 48 of the Major Port Trusts Act, 1963. Rate Calculation Methodology: The wharfage rate is calculated annually with reference to actual expenditure. This calculation follows the methodology decided in the Inter-Secretarial meeting held on May 27, 1992. Components included in the calculation are: Share of operating expenditure of Traffic Department. Dredging expenditure proportionate to the traffic handled. Depreciation. Share of Management and Administration overheads. Interest on Capital. Return on Capital at 6%. Final Wharfage Rate: The final wharfage rate for iron ore fines exported by KIOCL during 2014-15 is set at ₹ 105.712 per metric ton. This rate aligns with the methodology agreed upon in the inter-secretarial meeting. KIOCL has accepted the wharfage calculation submitted by NMPT. Approval and Consultation: A separate hearing was deemed unnecessary as both parties underwent mutual consultation, and their correspondence reflected agreement. The Authority approved the proposed wharfage rate as it is based on the agreed methodology and consensus between NMPT and KIOCL. Impact Analysis: New Mangalore Port Trust (NMPT): Impact: NMPT is authorized to charge KIOCL the approved wharfage rate of ₹ 105.712 per metric ton for iron ore fines exported from Jetty No. 8 during 2014-15. Action Required: Implement the approved wharfage rate for KIOCL's iron ore fine shipments. Kudremukh Iron Ore Company Limited (KIOCL): Impact: KIOCL will be required to pay the fixed wharfage charges for their iron ore fine exports through NMPT Jetty No. 8 during the specified period. Action Required: Pay the wharfage charges at the rate of ₹ 105.712 per metric ton to NMPT for iron ore fines exported during 2014-15.

Key Entities Referenced

Tariff Authority for Major Ports: The regulatory authority responsible for fixing tariff charges for major ports in India. Major Port Trusts Act, 1963: The Indian legislation under which the Tariff Authority for Major Ports derives its powers. Mumbai, Maharashtra: The city where the notification was issued. New Mangalore Port Trust (NMPT): A major port trust in Karnataka, India, that submitted a proposal for wharfage charges. Kudremukh Iron Ore Company Limited (KIOCL): A company exporting iron ore fines through the New Mangalore Port Trust (NMPT). Jetty No. 8: The specific loading dock at New Mangalore Port Trust (NMPT) used by Kudremukh Iron Ore Company Limited (KIOCL). Ministry of Surface Transport: The Indian government ministry involved in discussions regarding wharfage rates, now known as Ministry of Shipping. 2014-15: The financial year for which the wharfage charges are being determined.
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Tariff Authority for Major Ports Case No. TAMP/71/2015-NMPT New Mangalore Port Trust … Applicant QUORUM: (i) Shri. T.S. Balasubramanian, Member (Finance) (ii) Shri. Rajat Sachar, Member (Economic) ORDER (Passed on this 15 day of January 2016) This case relates to the proposal dated 19 November, 2015 received from the New Mangalore Port Trust (NMPT) for fixation of final wharfage charges for shipment of iron ore fines from Jetty No. 8 by the Kudremukh Iron Ore Company Limited (KIOCL) through the NMPT during year 2014-15 through NMPT. 2. The wharfage rate for the iron ore/pellets exported by the KIOCL through the NMPT is calculated annually with reference to actual expenditure following the methodology decided in the Inter-Secretarial meeting held on 27 May, 1992 between the Secretary (Ministry of Surface Transport) and the Secretary (Steel). Accordingly, the following components are included for calculation of wharfage for shipment of iron ore or pellets of KIOCL from NMPT: (i). Share of operating expenditure of Traffic Department.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 (ii). Dredging expenditure proportionate to the traffic handled. (iii). Depreciation. (iv). Share of Management and Administration overheads. (v). Interest on Capital. (vi). Return on Capital @6%. 3. The proposal for fixation of final wharfage rate of `105.712 per MT for iron ore fines exported by KIOCL during the year 2014-15, follows the methodology agreed in the inter-Secretarial meeting. The statement of calculation of wharfage for the year 2014-15 submitted by NMPT has been accepted by KIOCL and a copy of the consent letter No.KIOCL/FAC/MR/2938 dated 14 November, 2015 of KIOCL is also made available to us. 4. Since both the parties have undergone the process of mutual consultation between them and the correspondence exchanged between them reflects the views of both the parties, a separate hearing in this case is not considered necessary. 5. The proposed wharfage rate is based on agreed methodology. Since both the parties have agreed to the proposed wharfage rate, this Authority is inclined to approve the rate proposed by the NMPT. 6. Accordingly, based on a collective application of mind, this Authority approves the proposed wharfage rate for iron ore fines exported by the KIOCL at Jetty No. 8 of the NMPT during the year 2014-15 from New Mangalore Port at `105.712 PMT. T.S. BALASUBRAMANIAN, Member (Finance) [ADVT. III/4/Exty./143/15/(350)] 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.

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