**Executive Summary**
This document, issued by the Ministry of Shipping (Ports Wing) on August 2nd, 2010, outlines a policy directive aimed at preventing private sector monopolies in Major Ports. It directs all Major Ports to follow the stated policy when awarding projects to private parties through Public Private Partnership (PPP) routes. The policy takes immediate effect for Requests for Qualification (RFQs) issued on or after this date.
**Key Points / Main Content**
* **Policy Objective:** Prevent private sector monopoly in Major Ports through PPP projects.
* **Restriction on Bidding:** If a port has only one private terminal/berth operator for a specific cargo, that operator and their associates are prohibited from bidding for the next terminal/berth handling the same cargo within that port.
* **Definitions:**
* 'Operator' includes consortium members of the bidder.
* 'Associates' are defined as entities that control, are controlled by, or are under common control with the Applicant/Consortium Member. "Control" means ownership of more than 50% of voting shares or the power to direct management and policies.
* 'Berth' has the same meaning as "Wharf" under Section 2 (za) of the MPT Act, 1963.
* 'Specific Cargo' includes containers, liquid bulk, dry bulk, or multipurpose/other general cargo.
* **Implementation:**
* The policy is effective immediately for RFQs issued on or after August 2nd, 2010.
* Major Ports are directed to incorporate the policy provisions into their Request for Qualification & Request for Proposal documents.
**Impact Analysis**
**Stakeholder: All Major Ports**
* **Impact:** Required to adhere to the policy for all future PPP projects.
* **Action Required:** Incorporate the policy provisions into the Request for Qualification & Request for Proposal documents.
**Stakeholder: Existing Private Terminal/Berth Operators**
* **Impact:** May be restricted from bidding on new projects based on their existing operations in a port.
* **Action Required:** Assess their current operations and potential bidding opportunities in light of the policy.
**Stakeholder: Potential New Private Terminal/Berth Operators**
* **Impact:** May face a more competitive bidding environment with restrictions on dominant existing operators.
* **Action Required:** Evaluate the changed competitive landscape when considering bids.
Key Entities Referenced
Major Port Trusts Act, 1963: Governs the Major Ports in India, referenced for defining policy scope and the meaning of 'Berth'.
Major Ports: Refers to the ports governed by the Major Port Trusts Act, and where this policy is applicable.
Public Private Partnership (PPP): The route through which projects at major ports are awarded to private parties, and which this policy aims to regulate to prevent monopolies.
Ministry of Shipping: The issuing authority for the policy, responsible for overseeing port operations.
Government of India
Ministry of Shipping
(Ports Wing)
No.PD-24018/8/2009 – PD.III New Delhi-1, dated the 2nd August, 2010
To
The Chairman, All Port Trusts
Sub:- Policy for preventing private sector monopoly in Major Ports.
Sir,
In pursuance of private sector participation guidelines, 1996 for the Port Sector
and with a view to ensure healthy competition and smooth award of the projects for
capacity augmentation at the Major Ports, the Central Government hereby directs all
Major Ports under Section 111 of the Major Port Trusts Act, 1963, to follow the
following Policy while awarding projects to private parties through Public Private
Partnership (PPP) route so as to avoid private sector monopoly in the Major Ports. This
policy is in supersession of this Ministry‟s letters No.PD-25021/13/2002-Pvt dated 11th
November, 2002, No.PD-12013/2/2005-JNPT dated 26th September, 2007 and No.PD-
11015/2/2006-VPT dated 1st October, 2008.
2.Policy
If there is only one private terminal/berth operator in a port for a specific
cargo, the operator of that berth or his associates shall not be allowed to bid for the
next terminal/berth for handling the same cargo in the same port.
For the purpose of this policy, the terms
(i) „Operator‟ includes consortium members of the bidder:
(ii) „Associates‟ means, in relation to the Applicant/Consortium member, a person
who controls, is controlled by, or is under common control with such
Applicant/Consortium Member (the Associate). As used in the definition, the
expression “control” means, with respect to a person which is a company or
corporation, the ownership, directly or indirectly, or more than 50% (fifty per
cent) of the voting shares of such person, and with respect to a person which is
not a company or corporation, the power to direct the management and policies
of such person by operation of law.
(iii) „Berth‟ shall have the same meaning as “Wharf” given in Section 2 (za) of the
MPT Act, 1963.(iv) „Specific Cargo‟ means (i) containers (ii) liquid bulk, (iii) dry bulk or (iv)
multipurpose/other general cargo.
3. The policy shall be applicable with immediate effect and shall apply to Request for
Qualification (RFQs) issued on or after this date.
4. It is also directed that the above provisions may be incorporated by the Major
Ports in the Request for Qualification & Request for Proposal to give effect to the
policy in relevant cases.
5. This issues with the concurrence of the Ministry of Law and Justice, Department
of Legal Affairs and approval of Hon‟ble Minister of Shipping.
Yours faithfully,
(Geetu Joshi)
Director
Tel No. 23321672