Home India Tariff Authority for Major Ports In exercise of the powers conferred by Section 48 of the Maj...
Date: 2019-06-07 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by Section 48 of the Major Port Trusts Act

Issued by Tariff Authority for Major Ports · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document is a notification from the Tariff Authority for Major Ports (TAMP) fixing the wharfage charges for the shipment of Kudremukh Iron Ore Company Limited (KIOCL) cargo, including iron ore fines, from Jetty No. 8 at New Mangalore Port Trust (NMPT) for the year 2017-18. The order was passed on March 29, 2019, based on a proposal received from NMPT on March 8, 2019. The approved wharfage rate is effective from May 8, 2019. Key Points / Main Content: Wharfage Charge Fixation: * The wharfage charges are fixed for shipment of KIOCL cargo, including iron ore fines, from Jetty No. 8 at NMPT. * The specified period for these charges is the year 2017-18. * The approved wharfage rate is ₹36.14 per MT. Methodology and Approval: * The wharfage rate calculation follows a methodology agreed upon in an Inter-Secretarial meeting on May 27, 1992. * Components included in the calculation are operating expenditure, dredging expenditure, depreciation, management overheads, interest on capital, and return on capital. * KIOCL has accepted the statement of calculation of wharfage submitted by NMPT. * The Authority approved the rate as both parties (NMPT and KIOCL) agreed to the proposed wharfage rate. Procedural Details: * NMPT submitted a proposal on March 8, 2019, for the fixation of wharfage charges. * A separate hearing was not considered necessary as both parties had undergone mutual consultation. * The order was passed on March 29, 2019. Impact Analysis: New Mangalore Port Trust (NMPT): * Impact: NMPT is authorized to collect wharfage charges at the rate of ₹36.14 per MT for KIOCL cargo as specified. * Action Required: Implement the approved wharfage rate for KIOCL cargo shipments from Jetty No. 8 and ensure compliance. Kudremukh Iron Ore Company Limited (KIOCL): * Impact: KIOCL will be charged wharfage at the rate of ₹36.14 per MT for cargo shipped from Jetty No. 8 at NMPT for the specified period. * Action Required: Pay wharfage charges to NMPT at the approved rate for cargo shipments during 2017-18.

Key Entities Referenced

Tariff Authority for Major Ports: A regulatory body that fixes tariff rates for major ports in India. Major Port Trusts Act, 1963: An Indian legislation governing the major ports in India. New Mangalore Port Trust (NMPT): A major port trust located in Karnataka, India, also the applicant in this case. Kudremukh Iron Ore Company Limited (KIOCL): A company involved in the export of iron ore and pellets through the New Mangalore Port Trust. Jetty No.8: The specific loading dock at the New Mangalore Port Trust used by KIOCL for exporting iron ore fines. T.S. Balasubramanian: Member Finance of Tariff Authority for Major Ports. Rajat Sachar: Member Economic of Tariff Authority for Major Ports. Ministry of Surface Transport: The Indian governmental body that, in 1992, was involved in setting the methodology for calculating wharfage charges.
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(cid:19)ित एमटी क(cid:14) घाट-शु क दर अंतर-सिचवालयी बैठक म; िलये गए िनण7य के अनुKप ह।ै एनएमपीटी (cid:18)ारा (cid:19)’त तु (cid:19)’त ाव के साथ केआईओसीएल के 25 फरवरी,,,, 2019 के सहमित पF स[ं य ा केआईओसीएल/एफएसी/एमआर/4752 क(cid:14) (cid:19)ित भी (cid:19)’त ुत क(cid:14) ह।ै 4. चूं(क, दोन(cid:24) ही प\ पर’पर परामश7 क(cid:14) (cid:19)(]या स े गजु रे ह ै और उनके बीच (cid:29)आ पFाचार दोन(cid:24) प\(cid:24) क(cid:14) राय (cid:19)कट करता ह,ै इस मामले म; अलग से सुनवाई आव^य क नह_ समझी जाती। 5. (cid:19)’त ािवत घाट-शु क दर ’व ीकृत (cid:19)णाली पर आधा<रत ह।ै चूं(क दोन(cid:24) ही प\ (cid:19)’त ािवत घाट-शु क दर पर सहमत ह,ै यह (cid:19)ािधकरण एनएमपीटी (cid:18)ारा (cid:19)’त ािवत दर को अनुमो(दत करन े को (cid:19)वृ(cid:5) ह।ै 6. तदनुसार, सामुिहक िवचार-िवमश7 के आधार पर, यह (cid:19)ािधकरण वष7 2017-18 के दौरान (cid:8) य ू मंगलोर प(cid:5)न के मा? यम से केआईओसीएल (cid:18)ारा एनएमपीटी क(cid:14) जेटी सं[य ा 8 से िनया7ितत लौह अय’क फाbस सिहत केआईओसीएल काग/ के िलए (cid:19)’ तािवत 36.14 Y. (cid:19)ित एमटी के घाट-शु क (cid:19)भार का अनुमोदन करता ह।ै टी.एस. बालसcु मिनयन,,,, सद’ य (िवdत ) [िव(cid:3)ापन-III/4/असा. /79/19] TARIFF AUTHORITY FOR MAJOR PORTS NOTIFICATION Mumbai, the 8th May, 2019 No. TAMP/16/2019-NMPT.—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 KIOCL cargo including iron ore fines from Jetty No.8 by the Kudremukh Iron Ore Company (KIOCL) through the NMPT during year 2017-18 as in the Order appended hereto.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 TARIFF AUTHORITY FOR MAJOR PORTS Case No.TAMP/16/2019-NMPT New Mangalore Port Trust … Applicant QUORUM: (i). Shri T.S. Balasubramanian, Member (Finance) (ii). Shri Rajat Sachar, Member (Economic) ORDER (Passed on this 29th day of March 2019) This case relates to the proposal dated 08 March 2019 received from the New Mangalore Port Trust (NMPT) for fixation of final wharfage charges for shipment of KIOCL cargo including iron ore fines from Jetty No.8 by the Kudremukh Iron Ore Company Limited (KIOCL) through the NMPT during year 2017-18. 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. (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 wharfage rate of ` 36.14 per MT for KIOCL cargo including iron ore fines exported by KIOCL during the year 2017-18, follows the methodology agreed in the inter-Secretarial meeting. The statement of calculation of wharfage for the year 2017-18 submitted by NMPT has been accepted by KIOCL and a copy of the consent letter No.KIOCL/FAC/MR/4752 dated 25 February 2019 of KIOCL is also made available by NMPT along with its proposal. 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 KIOCL cargo including iron ore fines exported by the KIOCL at Jetty No.8 of the NMPT during the year 2017-18 from New Mangalore Port at ` 36.14 PMT. T.S. BALASUBRAMANIAN, Member (Finance) [ADVT.-III/4/Exty./79/19] 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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