## Policy Analysis Report: Fixation of Schedule of Rates for Land Water Area Leased to Mazagaon Dock Shipbuilders Limited
**1. Executive Summary:**
This report analyzes the Tariff Authority for Major Ports' (TAMP) order regarding the fixation of the Schedule of Rates (SoR) for land and water areas leased to Mazagaon Dock Shipbuilders Limited (MDL) by the Mumbai Port Trust (MBPT). The order, effective from 01.10.2017 to 30.09.2022, establishes lease rentals for specific plots and areas within the Mazgaon Division, taking into account Policy Guidelines of Land Management 2015. Key findings include the specific rates per square meter for different plots and water areas, an annual increase provision, and stipulations regarding taxes, service charges, and arrears.
**2. Introduction:**
The purpose of this report is to provide a comprehensive overview and analysis of the order published by the Tariff Authority for Major Ports (TAMP) concerning the fixation of the Schedule of Rates (SoR) for land and water areas leased by the Mumbai Port Trust (MBPT) to Mazagaon Dock Shipbuilders Limited (MDL). This analysis is solely based on the provided policy text.
**3. Policy Overview:**
This policy appears to be a **new** determination of the specific tariff (rental rates) for land and water leased under existing agreements.
* **Core Objective(s):** The core objective is to establish a clear and fixed Schedule of Rates (SoR) for the lease of land and water areas by MBPT to MDL for the period of 01.10.2017 to 30.09.2022. This includes defining specific rates for various plots, water areas, and establishing parameters for calculating rent, arrears, and related charges.
**4. Background and Rationale:**
Since this appears to be a new determination of specific tariff, the underlying problem/issue being addressed is likely the need for a formal and transparent rate schedule for existing leases, which ensures fair compensation for the use of MBPT land and water resources by MDL, and that these rates are in accordance with the Policy Guidelines of Land Management 2015. Furthermore, a defined schedule ensures revenue predictability for MBPT and cost predictability for MDL.
**5. Key Provisions / Changes:**
As a determination for new tariffs, the key provisions are:
* **Rate Schedule:** The order specifies the rates per square meter per annum for several plots and water areas as of 01.10.2017. Specific plot numbers and their corresponding rates are detailed (e.g., Plot bearing No. 355 Code no. 20801640: 10,214.40). This is the core provision establishing the lease costs.
* **Annual Increase:** A 4% annual increase to the SoR is mandated every October, starting from 01.10.2018 and continuing until 30.09.2022.
* **FSI Factor:** The actual rent will be worked out based on a base rent and a factor recommended by a committee appointed for determining the applicability of Floor Space Index (FSI).
* **Exclusions:** Taxes, service charges, penalties, and interest rates are not included in the stated rates.
* **Water Body Rate:** The rate for allotment of water bodies is set at 50% of the SoR rates for the abutting land.
* **Arrears Calculation:** Differential arrears, liabilities, and other dues for the period from 01.10.2017 to 30.09.2022 will be calculated based on the specified rates.
* **Applicability:** The rates are only applicable to the four expired leases of MDL as identified.
* **Interest Charges:** Interest will be charged beyond the permissible period as per the Board's policy.
* **Payment Deadline:** Rent/compensation/license fees for each month must be paid by the tenants/lessees/licensees/occupants on or before the 15th day of the succeeding month.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* **Mazagaon Dock Shipbuilders Limited (MDL):** As the lessee, MDL is directly affected by the established lease rates.
* **Mumbai Port Trust (MBPT):** As the lessor, MBPT is responsible for implementing the order and collecting lease revenues.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:**
* **Tariff Authority for Major Ports (TAMP):** Responsible for issuing the order and resolving disputes.
* **Mumbai Port Trust (MBPT):** Responsible for implementing the order, calculating the dues, and collecting payments.
* **Committee for FSI:** Responsible for determining the FSI factor to be applied in rent calculations.
* **Timelines/Procedures:**
* The rate schedule is effective from 01.10.2017 to 30.09.2022.
* The SoR increases by 4% annually in October.
* Rent is due by the 15th of the following month.
* Differential arrears are calculated for the entire period of 01.10.2017 to 30.09.2022.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of this policy are:
* **Revenue Generation for MBPT:** MBPT will generate revenue from the lease of its land and water areas to MDL based on the fixed schedule of rates.
* **Cost Predictability for MDL:** MDL will have a predictable cost structure for the lease of land and water areas, facilitating budgeting and financial planning.
* **Fair Compensation:** The order aims to provide fair compensation to MBPT for the use of its resources, reflecting their market value and potential for revenue generation.
* **Legal Compliance:** Adherence to the Policy Guidelines of Land Management 2015.
* **Clear Payment Schedule**: Enforces timely payments via deadlines and interest charges for late payments.
**9. Conclusion:**
The Tariff Authority for Major Ports' order regarding the fixation of the Schedule of Rates for land and water areas leased to Mazagaon Dock Shipbuilders Limited is a significant policy instrument. It establishes a clear, fixed, and transparent rate structure for the lease agreement between MBPT and MDL, contributing to revenue generation for the port trust and cost predictability for the shipbuilder. The order's implementation will likely have a substantial impact on the financial operations of both entities during the specified period.
Key Entities Referenced
Tariff Authority for Major Ports: A governmental authority responsible for setting tariffs for major ports in India.
Major Port Trusts Act, 1963: An act of the Indian Parliament governing the major port trusts in India.
Mumbai Port Trust: A major port trust in Mumbai, India, also referred to as MBPT.
Mazagaon Dock Shipbuilders Limited: A shipbuilding company that has leased land and water area from Mumbai Port Trust, also referred to as MDL.
Mazagaon Division: A division within the Mumbai Port Trust area related to the lease with Mazagaon Dock Shipbuilders Limited.
T.S. Balasubramanian: Member Finance of Tariff Authority for Major Ports.
Sunil Kumar Singh: Member Economic of Tariff Authority for Major Ports.
Policy Guidelines of Land Management 2015: Policy document (PGLM 2015) used as the basis for the proposal of MBPT.
Mumbai: City in Maharashtra, India, where the notification was issued.
New Delhi: City in Delhi, India, where the Gazette of India is published.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 553] नई कदल्ली, िुक्रवार, नवम्ब र 12, 2021/कार्ततक 21, 1943
No. 553] NEW DELHI, FRIDAY, NOVEMBER 12, 2021/KARTIKA 21, 1943
महापत्तन प्रिल्ु क प्राजधकरण
अजधसचू ना
मुंबई, 2 नवम् बर, 2021
स.ं टीएएमपी/51/2021-एमबीपीटी.—महापत्तन न् यास अजधजनयम, 1963 (1963 का 38) की धारा 49 द्वारा प्रदत्त
िजियों का प्रयोग करते हुए महापत्तन प्रिुल् क प्राजधकरण एतद ् द्वारा मझगांव डाक जिपजबल्डसस जलजमटेड – आरआर िोन 10/80
(मझगांव जडवीिन) को पट्टे पर दी गई भूजम / िल क्षेत्र के 01.10.2017 से 30.09.2022 तक की अवजध के जलये ककराया अनुसूची
जनधासरण के मुम्बई पत्तन न् यास (एमबीपीटी) से प्राप्त प्रस्ट् ताव का, इसके साथ संलग्न आदिे ानुसार, जनपटान करता ह।ै
महापत्तन प्रिल्ु क प्राजधकरण
मामला सख्ं य ा टीएएमपी/51/2021-एमबीपीटी
मम्ु बई पत्तन न्य ास - - - आवेदक
गणपर्तू त
(i). श्री टी.एस. बालसुब्रमजनयन, सदस्ट् य (जवत्त)
(ii). श्री सुनील कुमार ससह, सदस्ट् य (आर्तथक)
आदिे
(नवंबर, 2021 के 1 वें कदन पाररत)
यह मामला मझगांव डाक जिपजबल्डसस जलजमटेड – आरआर िोन 10/80 (मझगांव जडवीिन) को पट्टे पर दी गई भूजम / िल
क्षेत्र के 01.10.2017 से 30.09.2022 तक की अवजध के जलये ककराया अनुसूची के अनुमोदन के जलये मुम्बई पत्तन न् यास (एमबीपीटी)
के 16 जसतम्बर, 2021 के पत्र संख्या एफए/ओईए-एल/21(88)/यू-8/252 के अंतगसत प्राप्त प्रस्ट्त ाव से संबंजधत ह।ै
6567 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2. एमबीपीटी का प्रस्ट्ताव संिोजधत भू-नीजत कदिाजनदिे 2015 पर आधाररत ह।ै प्रस्ट्ताव के बारे में संबंजधत प्रयोक् ताओं / /
ककरायेदारों / पट्टाधारकों के साथ परामिस ककया गया। मामले की संकक्रया के दौरान प्रयोक् ताओं / ने उत्तर कदया। एमबीपीटी ने
प्रयोक् ताओं / की रटप्पजणयों का प्रत्युत्तर कदया। इस मामले में वीजडयो कान् रेससग के माध्य म से 11 अिूबर, 2021 को एक संयुक् त
सुनवाई का आयोिन ककया गया। संयुक्त सुनवाई में एबीपीटी रर प्रयोक् ताओं / ने अपन-े अपने जनवेदन रखे।
3. मामले के संसाधन के दौरान एकत्र की गई सूचना की समग्रता रर सामूजहक जवचार जवमिस के आधार पर, इस प्राजधकरण ने
मझगांव डाक जिपजबल्डसस जलजमटेड – आरआर िोन 10/80 (मझगांव जडवीिन) को पट्टे पर दी गई भूजम / िल क्षेत्र के 01.10.2017
से 30.09.2022 तक की अवजध के जलये ककराया अनुसूची के अनुमोदन के जलये एमबीपीटी के प्रस्ट्ताव का जनपटान करते हुए एक
सकारण आदिे पाररत ककया।
4. यह प्राजधकरण चाहता है कक मझगांव डाक जिजप्बल्डसस जलजमटेड – आरआर िोन 10/80 (मझगांव जडवीिन) को पट्टे पर दी
गई भूजम / िल क्षेत्र के 01.10.2017 से 30.09.2022 तक की अवजध के जलये एमबीपीटी की जनम्नजलजखत ककराया अनुसूची को,
सकारण आदिे की अजधसूचना की प्रतीक्षा ककये जबना, अजधसूजचत ककया िाये:
“
क्रम आरआर प्लाट सख्ं या 1.10.2017 को
सख्ं या िोन दर प्रजत वग समीटर प्रजत वर् स
(` म)े
1 2 3 5
1. 10/80 प्लाट : ` 10,214.40/- भूजम के जलये
i) संख्या. 355 (कोड संख्या. 20801640)
ii) उत्तरी याडस में चरण II का जवस्ट्तार (कोड संख्या. 20801642) ` 5,107.20/- बेजसन/ िल क्षेत्र
iii) दजक्षण याडस में जस्ट्लपवे का जवस्ट्तार (कोड संख्या. 20801650) के जलये
iv) जस्ट्लपवे जवस्ट्तार के जलये अजतररि िल क्षेत्र (कोड संख्या.
20801652)
रटप्पण:
1. उपरोि दरमान प्रजत वर्स अिूबर में 4% बढ िायेगा रर 30.09.2022 तक वैध रहगे ।
2. ककराये की वास्ट्तजवक राजि एफएसआई की प्रयोिनीयता के उद्देिय से जनयुि सजमजत द्वारा यथासंस्ट्तुत के अनुसार
मूल ककराये रर गुणक के आधार पर जनकाली िायेगी।
3. उि दरों में कर, सेवा प्रभार, िाजस्ट्तया,ं ब्याि दर िाजमल नही ह।ै
4. िल जनकायों के आबंटन की दर दरमान दरों के 50% पर लागू ह।ैं
5. 01.10.2017 से 30.09.2022 की अवजध के जलये अंतरीय बकाया, दये तायें रर अन्य संदये /प्रभारों की गणना उि
दरों के आधार पर की िायेगी।
6. यह दरें एमडीएल के 4 समाप्त हुए पट्टों पर ही लागू होंगी, िैसी ऊपर चचास की गई है।
7. अनुमत अवजध से इतर अवजध का ब्याि समय समय पर बोडस की नीजत के अनुसार प्रभायस होगा।
8. चाह े मांग की गई है या नहीं, ककरायेदारों/पट्टाधारकों/लाइसेंस धारकों/दखलकारों द्वारा ककसी महीने का
ककराया/प्रजतकर/लाइसेंस िुल्क का भुगतान अगले महीने के 15वें कदन को या उससे पहले करना होगा।
”
5. इस प्राजधकरण द्वारा पाररत सकारण आदिे अलग से सूजचत ककया िायेगा तथा एमबीपीटी रर संबंजधत ककरायेदारों/
पट्टाधारकों को बाद में संसूजचत ककया िायेगा।
टी. एस. बालसुब्रमजनयन, सदस्ट् य (जवत्त)
[जवज्ञापन-III/4/असा./415/2021-22][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
Mumbai, the 2nd November 2021
No. TAMP/51/2021-MBPT.—In exercise of the powers conferred by Section 49 of the Major Port
Trusts Act, 1963 (38 of 1963), the Tariff Authority for Major Ports hereby disposes of the proposal received
from Mumbai Port Trust (MBPT) for fixation of Schedule of Rate for the period 01.10.2017 to 30.09.2022 for
Land/ Water area leased to Mazagaon Dock Shipbuilders Limited – RR Zone 10/80 (Mazagaon Division),
as in the Order appended hereto.
Tariff Authority for Major Ports
Case No. TAMP/51/2021-MBPT
Mumbai Port Trust - - - Applicant
QUORUM
(i). Shri. T.S. Balasubramanian, Member (Finance)
(ii). Shri. Sunil Kumar Singh, Member (Economic)
ORDER
(Passed on this 1st day of November 2021)
This case relates to a proposal received from Mumbai Port Trust (MBPT) vide its letter No.
FA/OEA-L/21(88)/U-8/252 dated 16 September 2021 seeking approval for fixation of Schedule of Rates for
the period 01.10.2017 to 30.09.2022 for Land / Water area leased to Mazagaon Dock Shipbuilders Limited
– RR Zone 10/80 (Mazgaon Division).
2. The proposal of MBPT is based on the Policy Guidelines of Land Management 2015 (PGLM 2015).
The proposal was taken on consultation with the relevant users/ tenants/ lessees. The users have
responded. The MBPT has responded to the comments of the users. A joint hearing on the case in
reference was held on 11 October 2021 through Video Conferencing. At the joint hearing, the MBPT and
the users have made their submissions.
3. With reference to the totality of information collected during the processing of the case and based
on a collective application of mind, this Authority has passed a speaking Order disposing of the proposal
filed by the MBPT for fixation of Schedule of Rates for the period 01.10.2017 to 30.09.2022 for Land /
Water area leased to Mazagaon Dock Shipbuilders Limited – RR Zone 10/80 (Mazgaon Division).
4. This Authority desires that the following Rent Schedule for MBPT prescribing Lease rentals for the
period 01 October 2017 to 30 September 2022 for Land / Water area leased to Mazagaon Dock
Shipbuilders Limited – RR Zone 10/80 (Mazgaon Division), may be notified without waiting for notification of
the Speaking Order:
“
SR RR PLOT NO Rate per sq mtr. per
NO. ZONE annum as on 1.10.2017
(In ` )
1 2 3 5
1. 10/80 Plot bearing `10,214.40/- for land
i) No. 355 (Code no. 20801640)
ii) Expansion Phase II in North Yard (code no.
20801642)
`5,107.20/- for basin/ water
iii) Extension of Slipway in South Yard (code no. area
20801650)
iv) Additional water area for Extension of Slipway
( code no. 20801652)4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
Notes :
1. The SoR mentioned above would increase by 4 % annually every October and would be valid till
30.09.2022
2. Actual quantum of Rent will be worked out on the base rent and factor as may be recommended by
the committee appointed for the purpose of applicability of FSI.
3. Taxes, service charges, penalties, interest rates are not included in the above rates.
4. Rate for allotment of water bodies is applicable at 50 % of the SOR rates for abutting land
5. Differential Arrears, liabilities and other dues/charges for a period from 1.10.2017 to 30.09.2022 will
be calculated based on above rates.
6. These rates are applicable to only the four Expired Leases of MDL as brought out above.
7. Interest would be chargeable beyond permissible period as per Board’s policy from time to time.
8. Whether demanded or not, rent/compensation/license fee for a month would have to be paid by the
tenants/lessees/licensees/occupants on or before the 15th day of each succeeding month.
”
5. The Speaking Order passed by this Authority will be intimated separately and communicated to the
MBPT and the relevant tenants/ lessees in due course of time.
T. S. BALASUBRAMANIAN, Member (Finance)
[ADVT.-III/4/Exty./415/2021-22]
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.