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MINISTRY OF POR'I'S, SHIPPING AND WATIIRWAYS
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3Trrffil ta/Publ i c- Pri vate- Partnershi p C e I I )
f'qblic Notice No. PD-1 3 1612023-l''Pl' le-357 401 I I
Datcd: 26tl' Septcm bcr, 2(124
Ministry of Ports, Shipping & Waterways invites commcnts/suggestions on the Draft
Migration of Tariff GuiOelines,, 2024 tbr Adoption of Market Determined Tariff for
ppF projects under Guidclines for Regulation of Tariff 2005, Guidclines for Upfront
I'ariff Setting for ppp Projects 200t1, Guidelines for Determination of Tariff for
Projects 2013 & 'f ariff Guidelines 2019 -Rcgarding'
'l-he Cornmittee corlprising of thc chairpersons of 3 Maior Ports Authorities has
of
submitted the Drall Migration o1' Tariff Guidelines ^ 2024 lor Adoption Market
'Iariff
Detennined l'arifl' fbr PI,I, Pro.iects undcr Guidelincs lbr Rcgulation of 2005.
'fariff
Ci,idclirres 1br tJpliont Setting lbr PPP Projccts 2008. Guidelines fbr
I)eternrination of 'l'aril f for Pro.iects 201 3 & 'l'arif f Guidelincs 2019 '
2. l'his Ministry. invitcs stakcholders. cxpcrts. and thc gcncral public to subrnit
thcir suggestion/fccdback on thc said l)ra1i (iuidclincs to this Ministry by 25.10.2024-
'l'aritl'Guidelincs.2024
n copy-ol the Drali Migration of is uploaded on thc wcbsitc
of the Ministry.
Flnclosures: As above xA-
(Manish Klrmar Yadav)
Under Secretary to the Government of lndia
Ministry of Ports, Shipping & Waterways
Room No.547. 1'ransPort Bhawan.
l, Sansad Marg- Ncw Delhi
[I'--mai I : u s 1t14t -P su' @gov. i n )
#0tr-23717731MIGRATION TARIFF GUIDELINES, 2024 FOR ADOPTION OF MARKET
DETERMINED TARIFF FOR PPP PROJECTS UNDERGUIDELINES FOR
REGULATION OF TARIFF2005,GUIDELINES FOR UPFRONT TARIFF SETTING
FOR PPP PROJECTS2008, GUIDELINES FOR DETERMINATION OF TARIFF
FOR PROJECTS 2013 AND TARIFF GUIDELINES 2019
Objective and Rationale
1.0 The market conditions for provision of Port services have undergone significant change
since liberalization in the Port sector. The sector has since witnessed changing role of
Major Port Authorities with introduction and increasing Public Private Partnerships at
Major Ports and also increased competition from Minor/Non-Major Ports.
2.0 In this backdrop, the Ministry of Ports, Shipping and Waterways (MOPSW) decided to
repeal the erstwhile Major Port Trusts Act 1963 and enact a new Legislation governing the
management of Major Ports in India with a view to provide more autonomy and flexibility
to Major Ports and to professionalize their governance. There were two fundamental tenets
envisaged in the new legislation viz.
(a) Enabling transformation of Major Ports from ‘service Port’ model to ‘landlord Port’
model by allowing greater independence and agile governance to Port authorities. At
the same time transitioning to increased role of Public Private Partnerships in
business operations at Major Ports, to enable them to better respond to market
forces.
(b) Powers to Port Authorities and PPP Concessionaires to fix tariff to allow price
competitiveness with Minor/Non-Major Ports by removing the role of Tariff Authority
for Major Ports (TAMP) in tariff fixation.
3.0 The Parliament of India enacted the revised Major Port Authorities Bill, 2020 to replace
the Major Port Trusts Act, 1963. The Ministry of Law and Justice has published the Major
Port Authorities Act, 2021 (MPA Act) in the Gazette of India vide Gazette no 3 dated 18
February 2021. The MPA Act came into force with effect from 03 November 2021 as per
Gazette Notification No. 4143 dated 29 October 2021 by the MOPSW.
Page 1 of 224.0 In furtherance of above-mentioned fundamental tenets, Section 27(1)of the MPA Act
provided as follows: -
“27.(1) The Board of each Major Port Authority or the committee or committees constituted
in this behalf by the Board in accordance with Section 14, may -
(a) frame scale of rates at which, and a statement of conditions under which, any services
shall be performed or made available;
(b) frame scale of rates at which, and a statement of conditions under which, the access to
and usage of the Port assets may be allowed by the Board;
(c) frame consolidated scale of rates for any combination of services specified in clause(a)
or for any combination of such service or services with any user or permission to use
or access to any Port assets as specified in clause (b);
(d) pass an order for refund of any amount overcharged by the Board in relation to the
services provided to any person;
(e) pass an order for recovery of any rate or charge which is short- leviedor erroneously
refunded by the Board to any person under this Act; and
(f) frame different scales, fees, rates and conditions for different classes of goods and
vessels under this section;
Provided that the fixation and implementation of such scales, fees, rates and conditions
shall be in consonance with the norms as may be prescribed and shall-
(i) not be with retrospective effect
(ii) not be in derogation with the rules made by or directives of the Central
Government in this behalf;
(iii) not be inconsistent with the provisions of the Competition Act, 2002; and
(iv) not be inconsistent with the provisions of any other law for the time being in
force;
Page 2 of 22Provided that in case of Public Private Partnership Projects after the commencement of
this Act, concessionaire shall fix the tariff based on market conditions and on such other
conditions as may be notified:
Provided further that the revenue share and other conditions would be as per provisions
of the specific concession agreement between the Board and the Public Private
Partnership concessionaire appointed under the Public Private Partnership Project.
5.0 The above Article through the two Provisos, specifically and mandatory mandated all
the existing and future Public Private Partnership concessionaires to fix the tariff
prospectively based on market conditions, within the ambit of revenue share and other
provisions agreed as per the respective Concession Agreements (CA) and with conditions as
notified. It was thus mandatory to introduce a regime which enables compulsory migration
of all PPP Projects/Concessionaires to a market determined tariff regime with conditions in
line with the second proviso. In fact, the MP Act does not distinguish between PPP
Concessionaires where CA was entered before the coming in effect of MP Act or PPP
Concessionaires after the coming in effect of the MP Act. All PPP Concessionaires are to be
given same treatment as far as market determined tariff is concerned. Also, the MP Act does
not have any provision for regulation and determination of tariff for PPP Concessionaires
by any other body/authority except by market determined tariff with conditions.
6.0 Subsequently, for the future Public Private Partnership projects, market determined
tariff regime proposed under the provisions of the MPA Act was codified through:
(a) The Model Concession Agreement (MCA), 2021 which allowed for concessionaires
to adopt market determined tariff and safeguarding Port authority interest by
introducing Royalty payment linked with Minimum Guaranteed Throughput (MGT)
(b) Tariff Guidelines, 2021 dated 21 December 2021 for framing of scale of Rates for the
Concession Agreements entered by the Major Port Authority with PPP
Concessionaire after the Major Port Authorities Act, 2021.
Introduction of Tariff Guidelines 2021 and the revised MCA permitted the PPP projects
awarded post the introduction of the referred MPA Act, to adopt market determined tariff.
Page 3 of 227.0 In the current context, the tariff setting of the PPP Concessionaires operating at the
Major Ports are being governed under different sets of tariff guidelines issued by the
Ministry of Ports, Shipping and Waterways (MOPSW) from time to time. The key
regulations presently applicable for PPP projects at Major Ports are as hereunder: -
(a) Tariff Guideline 2005 superseded by Tariff Guideline 2019: The PPP Projects bid
out prior to 26 February 2008 were earlier governed by the Tariff Guidelines of 2005
issued by the then MSRTH. Effective 7 March 2019, they are now governed by the
Tariff Guidelines 2019 issued by Ministry of Shipping (MOS).
(b) Tariff Guideline 2008: The PPP Projects which were bid out between 26 February
2008 and upto 30 July 2013 are governed under the Upfront Tariff Guidelines 2008
issued by then Ministry of Shipping, Road Transport and Highways (MSRTH).
(c) Tariff Guideline 2013: The PPP Projects which were bid out from 31 July 2013 till
the MPA Act, 2021 came into force from 3 November 2021 fall under the purview of
Reference Tariff Guidelines, 2013 issued by the then Ministry of Shipping.
8.0 The Current scenario
In the past, tariffs were regulated due to limited competitive landscape but the evolving
market and competitive landscape necessitates deregulation: The original objective of
introducing the tariff regulations in 2005 inter alia included safeguarding interest of users,
while ensuring fair returns to the Port and encourage competition & efficiency. The long-
term objective outlined in the Tariff Guideline 2005 was competitive pricing. The market
and competitive landscape in the Indian Port sector has since witnessed a significant shift.
(a) Shift towards land-lord model: Previously, the Major Port authorities were also the
service providers to end users as well as concessioning authority. Thus, the tariff
regulations played an important role in safeguarding the interest of both Port users and
PPP operators. With the transition to land-lord Port model and increased private sector
participation, the utility of tariff regulations (and fixation) in this context has diminished.
Page 4 of 22(b) Intra-Port parity and competition: The tariff regulations 2019(erstwhile
2005)/2008/2013 applicable to PPP/BOT projects have differing regulatory approach and
they presently subsist at the Major Ports. Thereby, there is no level playing field amongst
the PPP Concessionaires.
(c) Competitiveness with respect to non-Major Ports: Minor/Non- Major Ports have
expanded rapidly and now have a substantial presence. The non-Major Ports presently
account for about 45% of the traffic. There is no parity in the tariff regulation mechanism
between the Major Ports and the Minor/non-Major Ports.
(d) Need for consistent user experience in the current landscape: With role of private
sector in provision of Port services, improvement in transport infrastructure and enshrined
tariff transparency at Major Ports, users now have opportunity and flexibility to avail
services best suited to them commercially. Competitive forces allow for self-regulation of
performance and tariffs. It is now essential to have uniform approach tariff setting allowing
for consistent user experience.
9.0 Thus, need was felt to address the disparity in differing regulations and tariff guidelines
subsisting at Major Ports, in order to provide uniform user experience and ensuring level
playing field for PPP operators by allowing them to play a greater role in determination of
tariffs and better respond to competitive market forces. With this context, the matter relating
to migration of existing PPP Concessionaires to market determined regime was discussed
in the Chintan Baithak organised by MOPSW held in June 2022 at Coorg, Karnataka.
Chairpersons of Major Port Authorities were present for the said Chintan Baithak amongst
others. In the said Chintan Baithak, directions were issued to MOPSW to formulate new
guidelines for migration of existing BOT Terminals to market-based tariff fixation which are
in consonance with the MPA Act.
10.0 Chairpersons of Majority of Major Ports in a meeting held by MOPSW in May 2024,
opined that providing an option to the existing PPP concessionaires governed by Tariff
Guidelines of 2005, 2008, 2013 and 2019 to market determined tariff as has been done for
the prospective bidders for new PPP Projects would be desirable as it would provide a level
playing field to PPP Concessionaires who are presently governed under different guidelines
Page 5 of 22operating at Major Ports. As per the signed Concession Agreements, PPP Concessionaires,
however, are bound to pay revenue share/royalty as prescribed in the Concession Agreement
to the Major Port Authorities. Considering the procedural complexities involved in drafting
a workable solution within the framework of existing rules and regulations, a detailed
comprehensive study of whole issue, including legal financial and contractual aspects was
found advisable.
11.0 In this backdrop, MOPSW vide O.M. No. PD-13/6/2024-PPP/e-357407, dated 09 May
2024, constituted a Committee under the Chairmanship of Chairman, V.O. Chidambaranar
Port Trust (VOCPT) for deliberation regarding Migration of existing PPP Concessionaires
to market driven tariff regime as prescribed in Tariff Guidelines 2021. The Chairmanship of
the Committee was taken over by Chairman, JNP Authority (JNPA) on Chairman VOCPA
taking over as Secretary, MOPSW with Chairmen of Chennai Port Authority and Paradip
Port Authority as members.
Based on detailed deliberation and consultation, the Committee outlined the following
approach: -
(a) All PPP Concessionaires operating under Guidelines for Regulation of Tariff 2005,
Tariff Guidelines 2008 / Reference Tariff Guidelines 2013 or Tariff Guidelines 2019
should migrate to market determined tariff regime subject to conditions laid out in
the tariff guidelines.
(b) The PPP Concessionaire shall be required to sign a Supplementary Agreement.
(c) The PPP Concessionaire on migration shall be free to fix tariffs/fee/scale of rates of
the services while ensuring due transparency and competitive landscape.
(d) There shall be no change in Royalty per unit/MT/TEU/FEU etc. or Royalty on
Revenue share basis as per the original Concession Agreement. Accordingly, the
provisions of MPA Act 2021would be adhered to.
(e) As an additional measure the Royalty as Revenue share of the Major Port,
should/would not go below what it would have got under the regime when tariff was
fixed/determined as per the Tariff Guidelines. This would be done by converting the
Revenue share to Royalty based on the Annual Revenue Requirement of the Project
as determined earlier.
Page 6 of 22(f) The concessions extended by the Central Government with regards to tariff for
coastal cargo/ container, transhipment container, etc shall be applicable and other
Policy/ directions issued by the Government or clarification in this regard shall be
applicable.
(g) The past disputes relating to tariff and other concession conditions may be resolved
between the parties (Major Port Authority and PPP Concessionaire).
12.0 The Committee held wide ranging consultations and sought the comments and
suggestions during the consultation process from PPP Concessionaires, IPPTA and IPA.
Thereafter, considering these consultations by the Committee and the recommendations
made by the Committee, the existing guidelines for tariff regulation have been reviewed and
to give effect to the requirement of Article 27(1) which mandates the notification of the
conditions for market determined tariff, the Government hereby issues the below-mentioned
Migration Tariff Guidelines, 2024.
MIGRATION TARIFF GUIDELINES, 2024 FOR ADOPTION OF MARKET
DETERMINED TARIFF FOR PPP PROJECTS UNDER GUIDELINES FOR
REGULATION OF TARIFF2005,GUIDELINES FOR UPFRONT TARIFF SETTING
FOR PPP PROJECTS 2008, GUIDELINES FOR DETERMINATION OF TARIFF
FOR PROJECTS 2013 AND TARIFF GUIDELINES 2019
13.0 PRELIMINARY
13.1 These Guidelines are issued to the Major Port Authorities (MPA) and existing PPP
Concessionaires governed under the erstwhile Guidelines for Regulation of Tariff
2005,Upfront Tariff Guidelines 2008, Reference Tariff Guidelines, 2013 and Tariff
Guidelines, 2019. The list of the PPP Concessionaires operating in aforementioned Tariff
Guidelines are provided as Annexure-I to this Guideline.
13.2This Tariff Guidelines may be called as “Migration of Tariff Guidelines, 2024 for
adoption of Market Determined Tariff for PPP Projects under Tariff Guidelines 2005,
Upfront Tariff Guidelines 2008, Reference Tariff Guidelines 2013 And Tariff
Guidelines, 2019”.
Page 7 of 2213.3 These Tariff Guidelines will be applicable to all the PPP Concessionaires who have
entered into Concession Agreements with all Major Ports under the Major Port Authorities
Act 2021 and with Kamarajar Port Limited (KPL) and are governed by erstwhile Tariff
Guidelines 2005, Upfront Tariff Guidelines, 2008, Reference Tariff Guidelines, 2013 and
Tariff Guidelines, 2019 (referred to as “PPP Concessionaire” hereinafter). Hereinafter, the
term MPA will include KPL in these Guidelines.
13.4 These Tariff Guidelines shall be valid prospectively from the date of publication in the
Gazette of India and shall be applicable to the PPP Concessionaires from the date of signing
of Supplementary Concession Agreement, post migration to this Tariff Guideline in
accordance with Para 25 of these Guidelines.
13.5 These Tariff Guidelines shall remain in force until reviewed or amended or modified or
revoked.
13.6 Unless the context otherwise requires, various terms used herein will have the same
definition as in the MPA Act 2021, and the Indian Ports Act 1908, as amended from time to
time.
13.7 All PPP Concessionaires shall continue to abide by the provisions contained in the
existing Concession Agreement (CA) entered into with the concerned MPA.
Simultaneously, PPP Concessionaires will also abide by these Tariff Guideline, by way of a
separate written Supplementary Agreement with the concerned MPA.
13.8 If any difficulty arises in giving effect to these Tariff Guidelines, the Central
Government may in consultation with PPP Concessionaires governed under the erstwhile
Tariff Guidelines of 2005, 2008, 2013, 2019 and MPAs make such orders, as may appear to
be necessary for removing the difficulty.
13.9 For purposes of these Tariff Guidelines, the term 'Scale of Rates' shall mean the specific
tariff rates along with conditionalities that are to be determined, informed and published by
PPP Concessionaires as per market conditions in respect of the services authorized to be
rendered by the PPP Concessionaire as per the CA signed between the Major Port Authority
and the PPP Concessionaire.
Page 8 of 2214.0 SCALE OF RATES (SOR)
A. DETERMINATION OF SCALE OF RATES
14.1 Each PPP Concessionaire authorized by the MPA to provide services as set forth in
their respective CA shall frame its own SORs and statement of conditions based on the
market conditions and other conditions as notified hereunder in these Tariff Guidelines. The
PPP Concessionaire is at the liberty to frame a consolidated SOR for any combination of
services they perform/ provide to their users/ customers.
PROVIDED that; the services or combination of the services for which the SOR is framed
shall be in consonance with the services as prescribed in the CA and shall
(i) not to be with retrospective effect;
(ii) not be in derogation with the rules made by or directives of the Central Government
in this behalf;
(iii) not to be inconsistent with the provisions of the Competition Act, 2002 (12 of 2003);
and
(iv) not be inconsistent with the provisions of any other law for the time being in force.
PROVIDED further that; the PPP Concessionaires shall abide by the para 22 of these Tariff
Guidelines, 2024 as regards payment of royalty/revenue share by the PPP Concessionaire to
the MPA.
14.2 The SOR along with conditionalities, for the services rendered shall be formulated by
the individual PPP Concessionaire, in accordance with these Tariff Guidelines, 2024 as
amended from time to time.
14.3 The PPP Concessionaire shall ensure that the SORs includes tariff for all the services
rendered/ to be rendered by them within the scope of services prescribed in the CA to ensure
transparency and complete disclosure of applicable charges on Port users. The SORs may be
categorized under the following broad categories –
a) Vessel Related Charges/Berth Hire Charges (if chargeable by the PPP Concessionaire
under the CA)
b) Cargo/ Container Handling Charges
Page 9 of 22c) Storage Charges
d) Other or Miscellaneous Charges
14.4 The PPP concessionaire shall be governed by the Policy/ directions issued by the
Government as regards concession in tariff for coastal cargo/ container, transshipment
container, etc., while framing their SORs.
14.5 In future also, in case any discount or incentives are mandated by any Government
authority under any applicable law to be applicable on certain types or natures of
containers/cargo, the concession in tariff/SOR for such container/cargo types handled by
PPP Concessionaires shall be subjected to the same level of discounts.
B. CURRENCY OF SCALE OF RATES AND CONVERSION OF TARIFF
14.6 All US dollar denominated tariff set forth in the SORs will be recovered in Indian
Rupees after conversion of charges in US dollar terms into its equivalent Indian Rupees at
the current reference rate (as on the date of conversion) as notified by the Reserve Bank of
India or the market buying rate notified by State Bank of India.
14.7 Alternatively, PPP Concessionaire may recover US dollar denominated tariff in US
dollars after seeking approval of the Government and in compliance with the provisions of
Foreign Exchange Management Act, 1999.
14.8 The day of entry of the vessel into Port limits shall be reckoned as the day for such
conversion purposes in respect of Vessel Related Charges. In respect of Cargo/Container
related charges, the day of entry of the vessel in the case of import containers/ cargo and the
day of arrival of containers/ cargo into the Port in the case of export containers/ cargo shall
be reckoned as the day for such conversion.
14.9 A regular review of exchange rate shall be made once in 30 (thirty) days from the date
of arrival in the cases of vessels staying in the Port for a period longer than 30 (thirty) days.
The basis of billing shall change prospectively with reference to the appropriate exchange
rate prevailing at the time of review.
Page 10 of 22C. REPORTING AND REVIEW OF SOR
14.10 The PPP Concessionaire shall host the SORs as published rates/ tariff and applicable
conditionalities on its website for transparency. The SORs/amendment/ revision in SORs as
published by the PPP Concessionaire on the website including conditionalities shall be the
ceiling level i.e. the maximum rates or charges or tariff chargeable.
14.11 The PPP Concessionaire may annually review its SORs and the conditionalities. The
PPP Concessionaire can modify, amend, increase, decrease, delete or add new tariff/
conditions and host the revised SORs along with conditionalities on its website in
accordance with the procedure set forth in these Tariff Guidelines, 2024. Without prejudice
to the aforementioned, the PPP Concessionaire can, if necessary, even during the year or
during the annual review, change or stipulate revisions to the SORs based upon market
conditions for existing cargo/ services provided by the PPP Concessionaire, rationalize
existing tariff/ existing conditionalities and can fix tariff/charge/ conditionalities based upon
market conditions for new cargo/ service as permissible within the scope of the CA(s).
14.12 The SORs and any revised/ modified SORs and conditionalities will come into effect
only after expiry of 30 days prospectively from the date of first publishing of the SORs,
revision/ modification of the SORs as the case may be on the website of the PPP
Concessionaire.
14.13 As a matter of abundant clarity, it is reiterated that the rates prescribed in the SORs
hosted on the website of the PPP concessionaire shall remain the published rates for the
particular PPP Concessionaire. No tariff or rates can be charged in excess of the said SORs.
It is however clarified that the PPP concessionaire would be at liberty to offer rebates and
discounts on the published SORs to its Port users/customers.
14.14 The PPP Concessionaire shall also intimate in writing the SORs as amended from
time to time to the MPA and also issue trade notice.
15.0 The SORs of each PPP Concessionaire shall be decided subject to: -
(i) Para 17 in respect of 'Vessel Related Charges/Berth Hire Charges';
(ii) Para 18 in respect 'Cargo Related Charges';
(iii) Para 19 in respect of 'Transhipment of Container Related Charges';
Page 11 of 22(iv) Para 20 in respect of 'Storage Charges; and
(v) Para 16and 21in respect of ‘Status of vessel’ and 'Other aspects’ of these Tariff
Guidelines 2024 as amended from time to time.
16.0 STATUS OF VESSEL
16.1 The status of the vessel for purposes of tariff determination will be borne out by its
certification by the Customs or the Directorate General of Shipping. This shall be the deciding
factor for its classification as ‘coastal’ or ‘foreign-going/laden’ for the purpose of levying
various charges and, the nature of cargo or its origin will not be of any relevance for this
purpose.
16.2 System of classification of ‘vessel’
(a) A foreign going vessel of Indian flag having a General Trading Licence can convert to
‘coastal run’ on the basis of a Customs Conversion Order. Such vessel that converts
into ‘coastal run’ based on the Customs Conversion Order at her first Port of call in
Indian Port, will not require any further custom conversion is required, so long as it
moves on the Indian Coast.
(b) A Foreign going vessel of foreign flag can convert to ‘coastal run’ on the basis of a
Licence for Specified Period or Voyage issued by the Directorate General of Shipping
and a Custom Conversion Order.
17.0 VESSEL RELATED CHARGES/BERTH HIRE CHARGES
17.1 This charge relates to the use by the vessel, of the Berth of PPP Concessionaire.
17.2 Currency of Vessel related charges
(a) Vessel-related charges for foreign-going vessels will be denominated in US dollars and
recovered in Indian rupees.
17.3 The Unit for levying vessel related charges may be Gross Registered Tonnage (GRT) of
the concerned vessel. Unit for levy of berth hire charges as well mooring fee, etc. which are
linked to the duration of stay of a vessel may be hourly.
Page 12 of 2217.4.0 Concessional tariff will be prescribed for Coastal Vessels as per the Policy
guidelines of the Government as amended from time to time.
17.4.1 As per the prevailing Coastal Concession Policy of the Government, in case of
coastal vessels, the vessel related charges should not exceed 60% of the published
SOR/charges for the corresponding SOR/charges for other (foreign going) vessels. Further,
these SOR/charges should be denominated and collected in Indian Rupees only.
17.4.2 The status of a vessel as borne out by its certification is the relevant factor to decide
whether the vessel is ‘foreign going/laded’ or ‘coastal’.
17.5.0 Criteria for levy of Vessel Related Charges/Berth Hire Charges at Concessional
Coastal rate
17.5.1 In cases of such conversion of vessel as set forth in para 16.2(a) and 16.2(b) above,
coastal rates shall be chargeable by the load Port from the time the vessel starts loading
coastal goods.
17.5.2 In cases of such conversion of vessel as set forth in para 16.2(a) and 16.2(b) above,
coastal rates shall be chargeable till the vessel completes discharging operations at the last
call of Indian Port. Immediately thereafter, foreign going rates shall be chargeable by the
discharge Ports.
17.5.3 For dedicated Indian coastal vessels having a Coastal licence from the Directorate
General of Shipping, no other document will be required to be entitled to coastal rate.
18.0 CARGO/CONTAINER RELATED CHARGES
18.1 This charge relates to handling of cargo/container from/to ship to shore transfer and
transfer from/ to quay to/ from storage yard including wharfage.
18.2 Cargo-related charges shall continue to be denominated in Indian Rupee terms.
18.3 Container related charges for foreign-going vessels may be denominated in US dollars
and recovered in Indian rupees.
Page 13 of 2218.4 ‘Wharfage rates' if chosen to be levied as part of cargo/container Related Charges by
the PPP Concessionaire may be on per unit of either weight or volume of cargo/container
handled.
18.5 Before classifying any cargo under “unspecified” category under the wharfage
schedule, the relevant Customs classification should be referred by the PPP Concessionaire
to find out whether the cargo could be classified under any of the specific categories
mentioned in the wharfage schedule.
18.6 Concessional tariff for levy of Cargo/Container Related Charges will be
prescribed for Coastal cargoes/ Containers as per the Policy guidelines of the
Government as amended from time to time.
18.6.1 Presently, as per the Coastal Concession Policy of the Government, the cargo/
container related charges for all coastal cargo/ containers, other than thermal coal and POL
including crude oil, iron ore and iron ore pellets should not exceed 60% of the published
SOR/charges for normal cargo/ container related charges. In case of cargo related charges,
the concession should be allowed on all the relevant cargo handling SOR/charges for ship-
shore transfer and transfer from/to quay to/from storage yard including wharfage.
18.7 Criteria for levy of Cargo/Container Related Charges at Concessional Coastal rate
18.7.1 Foreign going Indian Vessel having General Trading License issued for ‘worldwide
and coastal’ operation should be accorded applicable coastal rates with respect to
Cargo/Container Handling Chargesi.e. ship to shore transfer and transfer from/ to quay to/
from storage yard including wharfage in the following scenario:
(i)Converted to ‘coastal run’ and carrying coastal cargo from any Indian Port and destined
for any other Indian Port.
(ii)Not converted* to ‘coastal run’ but carrying coastal cargo from any Indian Port and
destined for any other Indian Port.
* The Central Board of Excise and Customs Circular no.15/2002-Cus. dated 25 February
2002 allows carriage of coastal cargo from one Indian Port to another Port in India, in
Indian flag foreign going vessels without any custom conversion.
Page 14 of 2218.7.2 In case of a foreign flag vessel converted to coastal run on the basis of a Licence for
Specified Period or Voyage issued by the Directorate General of Shipping, and a Custom
Conversion Order, the coastal cargo/ container loaded from any Indian Port and destined for
any other Indian Port should be levied at the rate applicable for coastal cargo/ container.
18.7.3 For the purpose of this concession, cargo/ container from a foreign Port which
reaches an Indian Port ‘A’ for subsequent transshipment to Indian Port ‘B’ will also qualify
insofar as the charges relevant for its coastal voyage. In other words, cargo/containers
from/to Indian Ports carried by vessels permitted to undertake coastal voyage will qualify
for the concession.
18.7.4 To exemplify, in case a container from foreign Port reaches Indian Port ‘A’ for
subsequent transshipment to Indian Port ‘B’, 50% of foreign going rate and 50% of coastal
rate shall be applicable for vessels permitted to undertake coastal voyage.
19.0 TRANSHIPMENT OF CONTAINER RELATED CHARGES
19.1 The handling charges for transhipment containers shall be concessional. Such published
SOR/charges shall not exceed 1.5 times the handling SOR/charges for the normal handling
operation in loading or unloading cycle. In case of transhipment of coastal containers, the
concession in handling charges prescribed above shall be calculated with reference to the
applicable handling SOR/charges (which are subject to the concessions specified in clause
18.6.1 above) for coastal containers for the normal handling operation in loading or
unloading cycle.
20.0 STORAGE CHARGES
20.1 For Storage charges/Demurrage, free days allowed shall be exclusive of Customs
notified holidays and Port/ terminal non-working days. The number of free days, may be
fixed by individual PPP Concessionaire in its SOR. Once storage/demurrage charge starts
accruing, no allowance will be made for the customs notified holidays and Port/ terminal
non-working days.
Page 15 of 2220.2 Free Storage period for import cargo will commence from the day cargo is stored in
the stacking yard and is calculated on first- in first- out basis. Similarly for export cargo it is
determined from the day it reaches the stacking yard from the rake/vehicle.
20.3Free Storage period for import containers shall commence from the day after the day of
landing of the container and for export containers, the free period shall commence from the
time the container enters the terminal.
20.4 The storage charges on abandoned FCL containers/ shipper owned containers shall be
levied upto the date of receipt of intimation of abandonment in writing or 75 days from the
day of landing of the container, whichever is earlier subject to the following conditions:
(i) The consignee can issue a letter of abandonment at any time.
(ii) If the consignee chooses not to issue such letter of abandonment, the container Agent/
MLO can also issue abandonment letter subject to the condition that,
(a) the Line shall resume custody of container along with cargo and either take back it or
remove it from the Port premises; and
(b) the line shall pay all Port charges accrued on the cargo and container before resuming
custody of the container.
(iii) The container Agent/ MLO shall observe the necessary formalities and bear the cost
of transportation and destuffing. In case of their failure to take such action within the
stipulated period, the storage charge on container shall be continued to be levied till
such time all necessary actions are taken by the shipping lines for destuffing the
cargo.
(iv) Where the container is seized/ confiscated by the Custom Authorities and the same
cannot be de-stuffed within the prescribed time limit of 75 days, the storage charges
will cease to apply from the day the Custom order release of the cargo subject to lines
observing the necessary formalities and bearing the cost of transportation and de-
stuffing. Otherwise, seized/ confiscated containers should be removed by the line/
consignee from the Port premises to the Customs bonded area and in that case the
storage charge shall cease to apply from the day of such removal.
Page 16 of 2221.0 OTHER ASPECTS
21.1 Port Users (i.e., users or customers of the PPP Concessionaire) will not be required to
pay charges for delays attributable to the PPP Concessionaire. For example, power failure,
malfunction/ non function of crane or equipment provided by the PPP Concessionaire.
21.2 Interest Rate: Port users (i.e., users or customers of the PPP Concessionaire) can be
subjected to interest on delayed payments and likewise the PPP concessionaire shall also pay
interest on delayed refunds at the same rate. For this purpose, the rate of interest should be
identical for amount receivable by the PPP concessionaire and payable by the PPP
concessionaire to be calculated on simple interest basis and not exceeding the interest rate of
delayed payment in the respective CA.
21.3 The period for calculation of delay in payments by Port users (i.e., users or customers of
the PPP Concessionaire) will be counted beyond 10 days after the date of raising the bills by
the concerned PPP Concessionaire.
21.4 The delay in refunds by the PPP Concessionaire will be counted beyond 20 days from
the date of completion of services or on production of all documents required from the Port
users (i.e., users or customers of the PPP Concessionaire), whichever is late
22.0 PAYMENT OF ROYALTY BY PPP CONCESSIONAIRES
22.1 The existing PPP Concessionaire under the erstwhile 2005, 2008, 2013 and 2019 Tariff
Guidelines shall migrate and transit to these Tariff Guidelines, 2024and frame their own
SOR based on Market conditions (i.e. market based tariff) by the PPP Concessionaire. The
PPP Concessionaire shall abide by the below mentioned conditions and a sign separate
Supplementary Agreement with the respective MPA under the provisions of “Amendments,
modifications or alterations” to the terms of the CA or similar such provision in the CA.
22.2 All PPP Concessionaires governed under the Tariff Guidelines of 2008/ 2013 and
2005/2019 Tariff Guidelines shall pay annual Royalty to the concerned Major Ports
Authority and the amount shall be higher of in each category of A, B or C below: -
A. IN CASE ROYALTY IS DETERMINED IN CA AS PER UNIT/TONNE/TEU FOR
EACH YEAR OF CA
Page 17 of 22(i) Royalty at per unit/tonne/ TEU in accordance with respective CA based on/as per
actual traffic.
(ii) Royalty at per unit/tonne/TEU as per the respective CA based on/ as per the
Minimum Guaranteed Traffic or Minimum Guaranteed Cargo (as the case may be).
B. IN CASE ROYALTY IS DETERMINED IN CA AS PER UNIT/TONNE/TEU FOR
BASE YEAR WITH YEAR-WISE ESCALATION FOR EACH YEAR OF CA
(i) Royalty at per unit/tonne/TEU rate escalated as per escalation formula in accordance
with the respective CA and based on/as per actual traffic.
(ii) Royalty at per unit/tonne/TEU rate escalated as per escalation formula in accordance
with the respective CA and based on the Minimum Guaranteed Traffic or Minimum
Guaranteed Cargo (as the case may be).
C. IN CASE ROYALTY IS DETERMINED IN CA AS REVENUE SHARE OF GROSS
REVENUE FOR EACH YEAR OF CA
In these cases, the Revenue share is taken by applying the ceiling rate of SOR i.e without
considering any discount on the SOR, which in turn was derived from the aggregate Annual
Revenue Requirement(s) of the Project. Thus, the Royalty would be higher of: -
(i) Royalty in terms of Revenue share percentage as prescribed in the CA on the Gross
revenue i.e., published market determined tariff x the actual Traffic handled by the
PPP Concessionaire.
(ii) Royalty estimated on ‘ARR based Royalty per tonne/TEU’(ARRBR).
(a) For the PPP concessionaires governed under Tariff Guidelines2008 and 2013, the
ARRBR is to be arrived for 2024-2024.This will be the escalated (as per TAMP order/CA)
Annual Revenue Requirement (ARR) for 2024-24 per tonne/TEU (ARR divided by
optimum capacity as per TAMP order) x Revenue share of Gross Revenue as per CA. The
Royalty would be ARR based Royalty per tonne/TEU x actual Traffic. The ARRBR would
be escalated on the same basis as provided in the TAMP orders (indexation @60% of the
annual WPI) for subsequent years.
(b) For the PPP concessionaires governed under Tariff Guidelines2005 and 2019, the
ARRBR is to be arrived for 2024-2025.This will be the Annual Revenue Requirement
Page 18 of 22(ARR) for 2024-25 per tonne/TEU (ARR divided by optimum capacity as per TAMP order)
x Revenue share of Gross Revenue as per CA. The Royalty would be ARR per tonne/TEU x
actual Traffic. The ARRBR would be escalated on the same basis as provided in the TAMP
orders (indexation @60% of the annual WPI) for subsequent years. The ARR for 2024-2025
would be as per Tariff determined by MPA for the year 2024-25 or would be derived from
the ARR as per last Tariff order published by TAMP and escalated as per indexation @60%
of the annual WPI.
(iii) Royalty in terms of Revenue share percentage as prescribed in the CA at the
published market determined tariff x the Minimum Guaranteed Traffic or Minimum
Guaranteed Cargo (as the case may be) handled by the PPP Concessionaire.
22.3 It is made clear that reference to TEU above, includes the Royalty for FEU, Empty,
Coastal, transhipment etc. The rate of Royalty is provided in para 22.7.3. For any category
of containers not mentioned in para 22.7.3, the rate of Royalty would be in the same
proportion as the Tariff determined under the applicable Tariff Guidelines of the Project.
22.4 The above-mentioned ARRBR would be worked/detailed out for each Public Private
Partnership Project (PPP Concessionaire)by a committee of Indian Ports Association (IPA)
assisted by expert(s). This will be part of/provided in the Supplementary Agreement.
22.5 IPA will publish the escalation factor (indexation@60% of the annual WPI) for the PPP
Concessionaires on a yearly basis.
22.6 All PPP Concessionaires shall maintain all documents and supporting evidence relating
to the details of cargo/ containers handled category wise, tariff charged and the amount
collected and submit to the MPA within 15th day of the following month duly certified by its
Internal Auditor. The MPA shall have the option to verify and audit the quantity of cargo/
TEUs handled, tariff charged and amounts of rates/ tariff received by the PPP
Concessionaire.
22.7 For PPP Concessionaires, where there are existing policies of the Central Government
for prescription of concessional tariff for coastal cargo/ container, transhipment container,
Page 19 of 22etc., the Per tonne/ Per TEU royalty/ revenue share payment for such coastal cargo/ coastal
container, transhipment container will be levied proportionate to that extent. The details are
as follows: -
22.7.1 Royalty rates for Coastal cargo/ Container entitled for Coastal concession in
tariff: As regards coastal containers or coastal cargo eligible for coastal concession in tariff
as prevailing Government policy, the tariff of the coastal cargo/ container, should not exceed
60% of the tariff applicable to normal foreign cargo/ container. However, Royalty payable
by the PPP Concessionaire to the Concessioning Authority on coastal cargo or containers
levied concessional tariff as per policy guidelines of the Government shall be at 60% of the
Royalty payable towards normal foreign cargo/container.
22.7.2 Royalty Rates for Transshipment containers i.e. Foreign/ Coastal: The Royalty
for transhipment containers shall be concessional. Such Royalty shall be 1.5 times the
Royalty for handling charges for the normal handling operation in loading or unloading
cycle. In case of transhipment of coastal containers, the concession in handling charges
prescribed above shall be calculated with reference to the applicable handling charges
(which are subject to the concessions specified in clause 18.4 above) for coastal containers
for the normal handling operation in loading or unloading cycle.
22.7.3 The concessional Royalty for Coastal and Transhipment containers as per Para 22.7.1
and 22.7.2 is summarized below: -
If X is the Royalty payable by PPP Concessionaire for a Foreign Bound/Laden TEU, then
Royalty payable Containers of Containers of Containers of
Length upto Length above 20’ Length above 40’
20’ but upto 40’(FEU)
Foreign Bound/Laden X 1.5* X 2* X
Coastal Bound/Laden 0.6* X 0.6*1.5*X 0.6*2*X
Transhipment for 1.5*X 1.5*1.5*X 1.5*2*X
Foreign bound/laden
Transhipment for 0.6*1.5*X 0.6*1.5*1.5*X 0.6*1.5*2*X
Coastal bound/laden
Empty Foreign 0.8*X 0.8*1.5*X 0.8*2*X
bound/laden
Page 20 of 22Empty Coastal 0.6*0.8*X 0.6*0.8*1.5*X 0.6*0.8*2*X
bound/laden
Transhipment for Empty 0.8*1.5*X 0.8*1.5*1.5*X 0.8*1.5*2*X
Foreign bound/laden
Transhipment for Empty 0.6*0.8*1.5*X 0.6*0.8*1.5*1.5*X 0.6*0.8*1.5*2*X
Coastal bound/laden
22.8 In future also, in case any discount or incentives are mandated by any Government
authority under any applicable law to be applicable on certain types or natures of
containers/cargo, the Royalty payments for such container/cargo types handled by the PPP
Concessionaires shall be subjected to the same level of discounts.
23.0 MANDATORY DISCLOSURES BY PPP CONCESSIONAIRES
23.1 All PPP Concessionaires shall furnish to respective MPA quarterly and annual reports
on cargo traffic handled. For the container terminals, the PPP Concessionaire shall furnish to
the MPA quarterly/ annual reports on container traffic handled.
23.2 The quarterly reports shall be submitted by the PPP Concessionaire to the respective
MPA within a month following the end of each quarter. The Annual Reports and Audited
Accounts shall be submitted by the PPP Concessionaire, within 180 days following the end
of each of the financial year. Any other information which may be required by MPA shall
also be furnished to them from time to time.
24.0 UNADJUSTED PAST PERIOD SURPLUS/DEFICIT, PAST PERFORMANCE
ANALYSIS OF FIVE (5) PPP CONCESSIONAIRES GOVERNED BY ERSTWHILE
TARIFF GUIDELINES 2005/2019 AND OTHER PAST PERIOD DISPUTES
24.1 Litigations are pending in the High Courts on the disputes concerning the past Tariff
Orders passed by TAMP in case of the Scale of Rates of five the PPP Concessionaires viz.
NSICT & GTIPL at JNPA; CCTPL & CITPL at CHPA and PSA SICAL at VOCPA. The
surplus/ deficit over and above the admissible costs and permissible return, if any, arising
during the period of litigation till the revised SOR approved by erstwhile TAMP under the
Tariff Guidelines, 2019 came into effect will be subject to the orders of the respective
Courts.
Page 21 of 2224.2 Alternatively, concerned MPA and the concerned PPP Concessionaires may resolve the
disputes concerning the treatment of past period surplus/deficit arising during the period of
litigation mutually as per the Dispute resolution mechanism envisaged in the CA or any other
applicable Legislation of the Government of India.
24.3 Provided further that, the above-mentioned tariff related disputes or any other tariff
related disputes of any nature which are pending prior to implementation of these Guidelines
may be resolved by the concerned MPA and the concerned PPP Concessionaires mutually as
per the Dispute resolution mechanism envisaged in the CA or any other applicable
Legislation of the Government of India.
25.0 SUPPLEMENTARY CONCESSION AGREEMENT
25.1 The PPP Concessionaires governed under erstwhile 2005, 2008, 2013 and 2019 Tariff
Guidelines as listed in Annexure-I, shall migrate to these Tariff Guidelines, 2024 subject to
the following:
(i) The PPP Concessionaire shall agree to unconditional acceptance of these Guidelines
and the provision of para 22 of these Guidelines.
(iii) The PPP Concessionaire shall be governed by the market determined tariff without
any financial consideration or change in other conditions as per CA.
25.2 The concerned Major Port Authority and the PPP Concessionaire, shall agree on and
execute a separate Supplementary Agreement in writing, within a period of 30 days of the
notification of these Guidelines, duly amending the respective CA to the extent of provisions
of these Tariff Guidelines, 2024 and incidental matters.
******
Annexure 1: List of PPP Concessionaire governed under the erstwhile Upfront Tariff
Guidelines, 2008, Reference Tariff Guidelines, 2013 and Tariff Guidelines, 2019
(erstwhile Tariff Guidelines 2005)
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