## Policy Analysis Report: Extension of Scale of Rates for Bharat Petroleum Corporation Limited (BPCL) at Jawaharlal Nehru Port Trust (JNPT)
**1. Executive Summary:**
This report analyzes a notification issued by the Tariff Authority for Major Ports (TAMP) regarding the extension of the existing Scale of Rates (SOR) for Bharat Petroleum Corporation Limited (BPCL) operating at the Jawaharlal Nehru Port Trust (JNPT). The notification extends the validity of BPCL's existing tariff for an additional six months, from January 1, 2021, to June 30, 2021, or until a new SOR is finalized, whichever is earlier. This extension is granted due to delays in finalizing a general revision proposal submitted by BPCL, primarily related to wharfage charges for crude oil and other products. The key finding is that this extension ensures continuity in tariff applicability and avoids a potential disruption in BPCL's operations at JNPT.
**2. Introduction:**
This report provides an analysis of a notification concerning the extension of the existing Scale of Rates (SOR) applicable to Bharat Petroleum Corporation Limited (BPCL) operating at the Jawaharlal Nehru Port Trust (JNPT). The analysis is based solely on the text of the provided notification.
**3. Policy Overview:**
* This is an amendment to a previously established policy regarding BPCL's Scale of Rates (SOR) at JNPT. The original policy was established by Order No. TAMP/46/2016-BPCL dated 8 February 2017.
* Core Objective: The primary objective of this amendment, as inferred from the text, is to ensure the continued application of a valid tariff structure for BPCL's operations at JNPT while a more comprehensive tariff review is pending.
**4. Background and Rationale:**
This specific amendment extends the existing SOR due to delays in finalizing BPCL's general revision proposal. BPCL's proposal, which includes considerations for wharfage charges on crude oil and other products, requires internal approvals that are taking longer than anticipated. The Tariff Authority for Major Ports (TAMP) is extending the existing rates to avoid a "vacuum in the tariff" that would occur if the existing rates expired before a new tariff is established.
**5. Key Provisions / Changes:**
* **Specific Part of Original Policy Changed:** This amendment directly alters the validity period of the existing Scale of Rates established by Order No. TAMP/46/2016-BPCL.
* **New Rule/Provision:** The existing Scale of Rates of BPCL is extended for a further period of six months, from January 1, 2021, up to June 30, 2021, or until the finalization of a new SOR based on the receipt of requisite information from BPCL, whichever is earlier.
* **Difference/Effect of Change:** This extension prevents the existing tariff from expiring on December 31, 2020. It allows BPCL to continue operating under the existing tariff structure without interruption, pending the finalization of its general revision proposal. This ensures financial predictability and operational continuity for BPCL within JNPT.
**6. Target Audience and Stakeholders:**
The primary stakeholders directly affected by this amendment are:
* **Bharat Petroleum Corporation Limited (BPCL):** As the operator whose tariff is being extended.
* **Jawaharlal Nehru Port Trust (JNPT):** As the port authority within which BPCL operates.
* **Customers of BPCL at JNPT:** Who are subject to the rates.
* **Tariff Authority for Major Ports (TAMP):** As the regulator responsible for setting and extending tariffs.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Tariff Authority for Major Ports (TAMP) is responsible for implementing and overseeing this extension.
* **Timelines:** The extension is effective from January 1, 2021, and lasts until June 30, 2021, or until a new SOR is finalized, whichever is earlier.
* **Specifically to the changes:** BPCL is expected to continue providing the "requisite information" for finalizing the new SOR proposal during this extension period.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of this extension is to:
* Maintain a consistent tariff structure for BPCL's operations at JNPT, preventing a disruption that could arise from the expiration of the existing tariff.
* Provide BPCL with additional time to finalize its general revision proposal.
* Ensure the continued flow of liquid cargo through JNPT by avoiding tariff-related uncertainties.
* The provision regarding additional surplus (Clause 4.4) indicates that past performance of BPCL will be reviewed and any surplus dealt with as per existing tariff guidelines.
**9. Conclusion:**
The notification analyzed provides for a six-month extension of BPCL's existing Scale of Rates at JNPT, ensuring uninterrupted tariff application while a more comprehensive revision is under consideration. This extension provides BPCL with operational and financial stability during this period. It highlights the role of TAMP in ensuring smooth functioning of major ports by proactively addressing potential tariff-related disruptions.
Key Entities Referenced
NEW DELHI: The city where the Gazette of India is published.
Tariff Authority for Major Ports: The authority responsible for setting tariffs for major ports in India.
Mumbai: City where the Tariff Authority for Major Ports notification was issued.
Major Port Trusts Act, 1963: The Act under which the Tariff Authority for Major Ports exercises its powers. Specifically, Section 48 is mentioned.
Bharat Petroleum Corporation Limited: An applicant company operating in the Jawaharlal Nehru Port Trust, whose scale of rates is being extended. Abbreviated as BPCL.
Jawaharlal Nehru Port Trust: A major port trust in India where Bharat Petroleum Corporation Limited operates. Abbreviated as JNPT.
T.S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports.
Sunil Kumar Singh: Member Economic of the Tariff Authority for Major Ports.
Tariff Guidelines, 2019: Guidelines used for determination of tariff for BOT operators operating in Major Port Trusts.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-11012021-224340
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 16] नई ददल्ली, सोमवार, िनवरी 11, 2021/पौष 21, 1942
No. 16] NEW DELHI, MONDAY, JANUARY 11, 2021/PAUSHA 21, 1942
महापत्त न प्रिल्ु क प्राजधकरण
अजधसचू ना
मुंबई, 01 िनवरी, 2021
स.ं टीएएमपी/46/2016-बीपीसीएल.—महापत्तन न् यास अजधजनयम, 1963 (1963 का 38) की धारा 48 म ें
प्रदत्त िजियों का प्रयोग करते हुए महापत तन प्रिल्ु क प्राजधकरण एतद्द्वारा िवाहरलाल नेहरु पत्तन न्यास म ें कायरय त
भारत पेरोजलयम कापोरेिन जलजमटेड के मौज़ूदा दरमानों की वैधता का जवस्ट्तार, इसके साथ सलं ग् न आदिे के अनुसार,
करता ह।ै
महापत्त न प्रिल्ु क प्राजधकरण
मामला सख्ं य ा टीएएमपी/46/2016-बीपीसीएल
भारत परे ोजलयम कापोरेिन जलजमटेड --- आवदे क
गणपर्ू त य
(i). श्री टी.एस.बालसब्रु मजनयन, सदस्ट्य (जवत्त)
(ii). श्री सजु िल कुमार ससहं , सदस्ट्य (आर्थकय )
आदेि
(ददसम्बर, 2020 के 28 वें ददन पाररत)
यह मामला िवाहरलाल नेहरु पत्तन (िेएनपीटी) की तरल कागो बथय म ें काययरत भारत पेरोजलयम कापोरेिन
जलजमटेड (बीपीसीएल) के मौज़ूदा दरमानों की वधै ता के जवस्ट्तार से सबंजन्धत ह।ै
155 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2.1. भारत पेरोजलयम कापोरेिन जलजमटेड (बीपीसीएल) के मौज़ूदा दरमान इस प्राजधकरण के 8 फरवरी 2017 के आदिे
संख्या टीएएमपी/46/2016-बीपीसीएल के द्वारा अनुमोददत दकये गय े थ,े िो भारत के रािपत्र में 06 माच य 2017 के
रािपत्र संख्या 94 म ेंअजधसूजचत हुए थे । उि आदिे म ें दरमानों की वैधता 31 माचय 2019 तक जनधायररत की गयी थी।
2.2. तत्पश्चात, बीपीसीएल के अनरु ोध के आधार पर प्राजधकरण बीपीसीएल के मौज़ूदा प्रिुल्क की वैधता का जवस्ट्तार
जनयजमत रूप से करता आ रहा ह।ै
2.3. जपछली बार, वैधता का जवस्ट्तार 3 महीन े की अवजध के जलये यानी 01 अक्टूबर, 2020 से 31 ददसम्बर, 2020
तक दकया गया था।
3.1. इस पष्ठृ भूजम में बीपीसीएल ने 10 ददसम्बर, 2020 के अपने ई-मेल के द्वारा संसूजचत दकया ह ैदक :
i) बीपीसीएल घाट्िुल्क में घटौती करने और अन्य उत्पादों के घाट्िुल्क को यथामल्ू य बनाये रखने के जलये अपन े
िीषय प्रबंधन के सम्पकय म ेंह।ै
ii) तथाजप, उि प्रस्ट्ताव पर बहुस्ट्तरीय जवचार-जवमिय और दैजनक चचाययों के बाविूद हमें अपने िीष य प्रबंधन स े
अंजतम अनुमोदन प्राप्त करने में उन्ह ें कुछ और समय लगगे ा क्योंदक इससे हमारा बाटम लाईन मार्ियन सीध े
प्रभाजवत हो रहा ह।ै
3.2. इसजलये बीपीसीएल ने इस प्राजधकरण को अपने मौज़ूदा दरमानों की वैधता का जवस्ट् तार और 6 महीने की अवजध
के जलए, यानी 01 िनवरी, 2021 से 30 िनू , 2021 तक, करने का अनुरोध दकया ह।ै
4.1 बीपीसीएल द्वारा नवम्बर-ददसम्बर 2019 में प्रस्ट्तुत सामान्य संिोधन का प्रस्ट्ताव बीपीसीएल से वांजछत सूचना
के अभाव में अंजतम रूप ददये िाने के जलय े लजम्बत पडा ह।ै 13 िनवरी, 2020 को एक संयिु सुनवाई का आयोिन दकया
गया था। संयिु सुनवाई में बीपीसीएल स े कच्चे तेल के घाटिल्ु क म ें वृजि से संबंजधत लाइसेंस प्रदाता पत्तन िवाहरलाल
नेहरु पत्तन न्यास (िेएनपीटी) द्वारा उठाई गयी आपजत्तयों के आलोक म ें बीपीसीएल न े प्रस्ट्ताव की समीक्षा करन े का
जनणयय जलया। चूंदक बीपीसीएल एक पीएसयू ह,ै और उसकी एक स्ट्तरीय सरंचना ह,ै उन्होन े बताया ह ै दक बीपीसीएल को
अपना संिोजधत प्रस्ट्ताव दायर करने में कुछ और समय लगेगा। अत:, इस मामले को अंजतम रूप ददये िाने के जलये कुछ
और समय लगगे ा।
4.2. उपरोि को देखत े हुए और चदूं क बीपीसीएल के जवस्ट्ताररत मौज़ूदा दरमानों की वैधता 31 ददसम्बर, 2020 को
समाप्त हो िायेगी, और उसके द्वारा ऊपर ददय े गय े कारणों स े तथा बीपीसीएल के अनुरोध के आधार पर और प्रिल्ु क म ें
दकसी जनवायत से बचने के जलये यह महसूस दकया गया दक बीपीसीएल के मौज़ूदा दरमानों की वैधता 31 ददसम्बर, 2020
स े आगे बढाये िान े की आवश्यकता ह।ै
4.3. तदनुसार, यह प्राजधकरण बीपीसीएल के मौज़ूदा दरमानों की वैधता का और 6 महीने की अवजध के जलए, यानी
01 िनवरी, 2021 से 30 िून, 2021 तक,, अथवा बीपीसीएल द्वारा प्रस्ट्ततु की िान े वाली सूचना / स्ट्पष्टीकरण के आधार
पर नये दरमानों को अंजतम रूप ददये िाने तक, िो भी पहले हो, जवस्ट् तार करता ह,ै िैसा बीपीसीएल ने अनुरोध दकया ह।ै
4.4. यदद बीपीसीएल के जनष्प ादन की समीक्षा के दौरान 01 अप्रैल2 2019 के बाद की अवजध के जलए राहाय ल लागत और
अनुज्ञेय प्रजतफल के अजतररक्त कोई अजधिेष पाया िाता ह ै तो ससे अजतररक्त अजधिेष को सरकार द्वारा 0 माचय, 2019
के पत्र संख्या पीआर-14019/20/2009-पीिी(भाग-IV) द्वारा िारी और इस प्राजधकरण द्वारा भारत के रािपत्र में
अजधसूजचत महापत्तन न् यास बीीटी प्रचालकों के प्रिल्ु क जनधायरण ददिाजनदिे 2019 के खडं 3.1.2 के अनुसार जनपटाया
िायेगा, िो पहल े प्रिुल् क ददिाजनदेि 200 द्वारा िाजसत होते थे।
टी.एस. बालसुब्रमजनयन, सदस्ट् य (जवत्त)
[जवज्ञापन –III/4/असा./452/2020-21][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
Mumbai, the 1st January, 2021
No. TAMP/46/2016-BPCL.—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 extends the validity of the existing Scale of Rates
of the Bharat Petroleum Corporation Limited operating in the Jawaharlal Nehru Port Trust as in the Order appended
hereto.
Tariff Authority for Major Ports
Case No. TAMP/46/2016-BPCL
The Bharat Petroleum Corporation Limited - - - Applicant
QUORUM
(i). Shri. T.S. Balasubramanian, Member (Finance)
(ii). Shri. Sunil Kumar Singh, Member (Economic)
O R D E R
(Passed on this 28th day of December 2020)
This note relates to the extension of the validity of the existing Scale of Rates of the Bharat Petroleum
Corporation Limited (BPCL) operating the liquid cargo berth in the Jawaharlal Nehru Port Trust (JNPT).
2.1. The existing Scale of Rates (SOR) of BPCL was approved by this Authority vide Order No. TAMP/46/2016-
BPCL dated 8 February 2017 which was notified in the Gazette of India on 06 March 2017 vide Gazette No. 94. The
Order prescribed the validity of the SOR till 31 March 2019.
2.2. Thereafter based on the request of the BPCL, this Authority has on regular occasions extended the validity of
the existing tariff of BPCL.
2.3. On the last occasion, the validity was extended for a further period of 3 months i.e. from 01 October 2020 to
31 December 2020.
3.1. In this backdrop, now, the BPCL vide its email dated 10 December 2020 has stated the following:
(i). BPCL is continuously following up with their top management for approval in the reduction of
wharfage for crude oil and maintaining at par wharfage charges for other products.
(ii). However, It would be taking some more time for final approval from their top management even
there are multilevel deliberations and discussions daily on the above proposals and as this would be
directly affecting our bottom line margins.
3.2. Therefore, BPCL has requested this Authority to extend the validity of the existing Scale of Rates for a
further period of 6 months i.e. from 1 January 2021 to 30 June 2021.
4.1. The general revision proposal submitted by BPCL in November-December, 2019 is pending for finalization
for want of requisite information from BPCL. A joint hearing was held on 13 January 2020. In view of the objection
raised by Licensor Port, Jawaharlal Nehru Port Trust (JNPT) at the joint hearing for the proposed increased in
wharfage for Crude oil, BPCL has decided to review its proposal. However, BPCL being a PSU and having a layered
structure, it has expressed that it will take some more time for BPCL to file its revised proposal. Hence, it may take
some more time for the case to mature for finalization.
4.2. In view of above and since the extended validity of the existing tariff of BPCL will expire on 31 December
2020 and based on the request made by BPCL for the reasons cited by it and in order to avoid a vacuum in the tariff, it
is felt appropriate to extend the validity of the existing tariff of BPCL beyond 31 December 2020.
4.3. Accordingly, this Authority extends the validity of the existing tariff of BPCL for a further period of4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
6 months i.e. from 01 January 2021 upto 30 June 2021 or upto the finalization of new SOR, based on the receipt of
requisite information from BPCL, whichever is earlier, as requested by BPCL.
4.4. If any additional surplus over and above the admissible cost and permissible return emerges for the period
post 01 April 2019, during the review of performance of BPCL, such additional surplus will be dealt with as per
Clause 3.1.2 of the Tariff Guidelines, 2019, for determination of tariff for BOT operators operating in Major Port
Trusts and previously governed by 2005 Tariff Guidelines issued by the Government vide its letter no. PR-
14019/20/2009-PG (pt-IV) dated 5 March 2019 and notified by this Authority in the Gazette of India.
T.S. BALASUBRAMANIAN, Member (Finance)
[ADVT. III/4/Exty./452/2020-21]
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.