Home India Tariff Authority for Major Ports Tariff Authority for Major Ports hereby extends the validity...
Date: 2017-08-17 Category: Extra Ordinary State: Union Government Country: India

Tariff Authority for Major Ports hereby extends the validity of the existing Scale of Rates of the Paradip Port Trust as in the Order appended

Issued by Tariff Authority for Major Ports · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: The Tariff Authority for Major Ports (TAMP) extends the validity of the existing Scale of Rates (SOR) for Paradip Port Trust (PPT). This extension is from March 31, 2017, until September 30, 2017, or the implementation date of the revised SOR, whichever comes first. This decision follows PPT's request due to delays in submitting necessary information related to GST implementation and annual audits, and aims to avoid a tariff vacuum. Key Points / Main Content: * **Extension of Validity:** * The validity of PPT's existing SOR is extended until September 30, 2017, or the effective date of the revised SOR, whichever is earlier. * The previous extension expired on March 31, 2017. * **Background and Rationale:** * TAMP had previously approved PPT's SOR, with validity extended periodically to prevent tariff vacuums. * PPT submitted a proposal for general revision of its SOR following the Tariff Policy 2015. * A joint hearing regarding the revision was held on February 27, 2017. * PPT requested the extension due to delays caused by GST implementation preparations and annual account audits. * **TAMP's Considerations:** * The extension considers the time needed to process additional information/clarifications from PPT. * The extension is intended to avoid a gap in PPT's SOR. Impact Analysis: * **Paradip Port Trust (PPT):** * *Impact:* PPT can continue operations under the existing SOR, avoiding a tariff vacuum while the revised SOR is being processed. * *Action Required:* PPT must provide the additional information/clarifications requested by TAMP to facilitate the finalization and implementation of the revised SOR. * **Port Users/Stakeholders:** * *Impact:* Continued application of existing tariffs ensures predictability and stability in port service costs during the interim period. * *Action Required:* Stakeholders should monitor for the implementation of the revised SOR, which will supersede the extended existing rates upon effect.

Key Entities Referenced

Tariff Authority for Major Ports: The regulatory body responsible for setting and managing tariffs for major ports in India. Major Port Trusts Act, 1963: The Indian legislation that empowers the Tariff Authority for Major Ports to regulate tariffs. Paradip Port Trust: A major port trust in India, specifically the Paradip Port Trust, whose scale of rates (SOR) is the subject of this notification. T.S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports. Rajat Sachar: Member Economic of the Tariff Authority for Major Ports. Bhubaneshwar, Odisha: The city in Odisha where a joint hearing regarding the Paradip Port Trust's proposal was held. Scale of Rates: The schedule of charges levied by the Paradip Port Trust for various services; the validity of the existing Scale of Rates (SOR) is being extended. Tariff Policy 2015: The tariff policy followed by Paradip Port Trust for the general revision of its Scale of Rates.
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TARIFF AUTHORITY FOR MAJOR PORTS Case No.TAMP/62/2009-PPT The Paradip Port Trust --- Applicant QUORUM (i). Shri. T.S. Balasubramanian, Member (Finance) (ii). Shri. Rajat Sachar, Member (Economic) ORDER (Passed on this 21st day of July, 2017) This case relates to the extension of the validity of the existing Scale of Rates (SOR) of the Paradip Port Trust (PPT). 2.1. The Authority had approved the SOR of the PPT vide its Order No. TAMP/62/2009-PPT dated 25 March, 2011 which was notified in the Gazette of India on 23 May, 2011 vide Gazette no. 111. The Order prescribed the validity of the SOR till 31 March, 2013. 2.2. Thereafter, the validity of the SOR was extended by the Authority at periodic intervals to avoid a vacuum in tariff and for the reasons cited in the said Order. On the last occasion, the Authority had extended the validity of SOR of PPT upto 31 March, 2017 vide its Order No. TAMP/62/2009 dated 4 January, 2017 which was notified in the Gazette of India on 18 January, 2017 vide Gazette No. 20. While extending the validity at each occasion, the PPT was advised by the Authority to file the general revision proposal immediately. 2.3. The PPT has filed its proposal for general revision of its Scale of Rates, following Tariff Policy 2015 vide its letter dated 6 December, 2016. The proposal has been taken up on consultation and a joint hearing on the case in reference was held on 27 February, 2017 at the PPT premises in Bhubaneshwar. Based on the request made by the users as well as PPT at the joint hearing, PPT vide its letter dated 3 May, 2017 has submitted its revised SOR. Based on a preliminary scrutiny of the proposal filed by PPT additional information/clarification has been sought from PPT.III 3 3. In the meanwhile, the PPT vide its email dated 30 June 2017 has stated that due to Annual Audit of Accounts and preparedness for implementation of GST, it will take some more time for it to submit the requisite information. As such, PPT has requested to consider extension of the validity of existing SOR i.e. up to 30 September, 2017. 4. The validity of the SOR of PPT has already expired on 31 March, 2017. Considering the time required for processing the information/clarification to be furnished by the PPT and in order to avoid a vacuum in the SOR of PPT, it is felt appropriate to extend the validity of the existing SOR beyond 31 March, 2017, as requested by the PPT. 5. In view of the above, this Authority extends the validity of the existing SOR of PPT beyond 31 March, 2017 and up to 30 September, 2017 or till the effective date of implementation of the revised SOR, whichever is earlier. T.S. BALASUBRAMANIAN, Member (Finance) [ADVT.-III/4/Exty./184/17] 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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