Date: 2015-03-13Category: Extra OrdinaryState: Union GovernmentCountry: India
The Tariff Authority for Major Ports hereby disposes of the proposal received from Paradip Port Trust (PPT) for general revision of its Scale of Rates, as in the Order appended hereto.
Executive Summary:
This document pertains to the disposal of a proposal received from the Paradip Port Trust (PPT) for a general revision of its Scale of Rates (SOR). The Tariff Authority for Major Ports (TAMP) addresses PPT's proposal in light of the new Tariff Policy of 2015. The document closes the current proposal and advises PPT to file a revised proposal based on the new Tariff Policy, 2015.
Key Points / Main Content:
Background and Initial Proposal:
* PPT submitted a proposal on August 27, 2012, for a general revision of its existing Scale of Rates (SOR).
* PPT's existing SOR was last approved on March 25, 2011, with tariff validity until March 31, 2013.
* PPT requested time to submit a revised proposal due to changes in cargo mix, financial year completion (2012-13), and damages from a severe cyclone.
Validity Extensions and Reminders:
* TAMP extended the validity of PPT's existing SOR multiple times:
* To March 31, 2014 (Order dated January 10, 2014)
* To June 30, 2014 (Order dated April 4, 2014)
* To September 30, 2014 (Order dated July 4, 2014)
* To December 31, 2014 (Order dated September 30, 2014)
* To March 31, 2015 (Order dated January 2, 2015)
* PPT was reminded to file its revised proposal multiple times, including letters dated February 17, 2014, and May 1, 2014.
New Tariff Policy 2015 and Closure of Current Proposal:
* The Ministry of Shipping issued the new Policy for determination of Tariff for Major Port Trusts, 2015, effective from January 13, 2015.
* TAMP decided to close the current proposal from PPT due to the new Tariff Policy 2015 coming into effect.
Impact Analysis:
Paradip Port Trust (PPT):
* Impact: The current proposal for general revision of the Scale of Rates is closed.
* Action Required: PPT must formulate and file a revised proposal based on the new Tariff Policy of 2015.
Key Entities Referenced
Tariff Authority for Major Ports: Regulatory body responsible for tariff regulation at major ports in India.
Paradip Port Trust: A major port trust in India, specifically located in Paradip, Odisha referred to as PPT in the document. The document discusses revisions to its Scale of Rates (SOR).
Major Port Trusts Act, 1963: The governing legislation providing powers to the Tariff Authority for Major Ports.
Scale of Rates: The schedule of charges levied by the Paradip Port Trust for its services. The document pertains to general revision of it's scale of rates.
Ministry of Shipping: The Indian government ministry responsible for ports and shipping, referred to as MOS in the document.
Policy for determination of Tariff for Major Port Trusts, 2015: A new tariff policy issued by the Ministry of Shipping, affecting tariff determination for major port trusts, which came into effect from January 13, 2015.
T. S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports.
Odisha: State in India where the Paradip Port Trust is located.
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[ foKkiu&III@4@vlk-@143@2014 (325) ]
TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
Mumbai, the 4th March, 2015
No. TAMP/55/2012-PPT.—In exercise of the powers conferred by Sections 48, 49 and 50 of the
Major Port Trusts Act, 1963 (38 of 1963), the Tariff Authority for Major Ports hereby disposes of the proposal
received from Paradip Port Trust (PPT) for general revision of its Scale of Rates, 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/55/2012-PPT
Paradip Port Trust - - - Applicant
QUORUM:
(i) Shri. T. S. Balasubramanian, Member (Finance)
(ii) Shri. C. B. Singh, Member (Economic)
ORDER
(Passed on this 13th day of February, 2015)
This case relates to the proposal received from the Paradip Port Trust (PPT) for general revision of its Scale of Rates
(SOR).
2. The existing SOR of the PPT was last approved by this Authority vide Order No. TAMP/62/2009-PPT dated
25 March, 2011. This Order was notified in the Gazette of India on 23 May, 2011 vide Gazette No. 111. The said Order
prescribed a tariff validity period till 31 March, 2013.
3.1. The PPT filed its proposal for revision of the existing SOR on 27 August, 2012. The proposal was registered as
a tariff case and taken on consultation. The comments received from user/ user organization was forwarded to the Port as
feedback information. The proposal was internally scrutinized and joint hearing in this case was held on 25 February,
2013.
3.2. When the case was being firmed up for final consideration of this Authority, the PPT vide its communication
dated 30 October, 2013 submitted that the financial year 2012-13 is already over and the actual figures for the year
2012-13 are available. The PPT also stated that the cargo mix estimated to be handled has undergone change and the oil
cargo has increased substantially. Further, the PPT submitted that due to the severe cyclone on 12 October, 2013, port has
suffered damages to its properties and incase if the Government of India does not consider the request of PPT for a grant
to restore the damages caused, the PPT will have to meet the restoration cost from its internal resources which will affect
its internal resources. In view of the above position, the PPT sought three months’ time to submit a revised proposal for
general revision of its SOR and requested for continuation of levy of tariff as per existing SOR.
3.3. Based on the request made by the PPT, this Authority vide its Order dated 10 January, 2014, extended the
validity of the existing SOR of the PPT from the date of its expiry till 31 March, 2014, subject to full adjustment of any
additional surplus over and above the admissible cost and permissible return accruing to the PPT post 1 April 2013, in the
tariff to be fixed for the next cycle. The PPT was also directed to file its revised proposal for general revision of its
existing SOR by 31 January, 2014, as agreed by the Port.
3.4. Since the proposal was not received, the PPT was reminded vide our letter dated 17 February, 2014, to file its
revised proposal. The PPT vide its letter dated 28 February, 2014 stated that it would submit its proposal as per new
guidelines likely to be finalised by the Government. In this regard, the PPT was advised vide our letter dated 1 May,
2014 to file its proposal under the applicable tariff guidelines of 2005.
3.5. Thereafter, noting that the PPT has not filed its revised proposal and that it would take time for the case to
mature for final consideration after receipt of the revised proposal (to be) filed by the PPT, this Authority vide its Order
dated 4 April, 2014, extended the validity of the existing SOR of the PPT from the date of its expiry till 30 June, 2014,
subject to full adjustment of any additional surplus over and above the admissible cost and permissible return accruing to
the PPT post 1 April, 2013, in the tariff to be fixed for the next cycle.
3.6. However, the PPT had not submitted its proposal. Recognizing that it would take time for the case to mature for
final consideration after receipt of the revised proposal (to be) filed by the PPT, this Authority vide its Order dated 4 July,
2014, extended the validity of the existing SOR of the PPT from the date of its expiry till 30 September 2014, subject to
full adjustment of any additional surplus over and above the admissible cost and permissible return accruing to the PPT
post 1 April, 2013, in the tariff to be fixed for the next cycle. The PPT was also advised to file its revised proposal by 31
August 2014 under the applicable tariff guidelines of 2005.
3.7. Subsequently, since the extended validity of the existing SOR of PPT has expired on 30 September, 2014 and
recognizing that the PPT had not filed its revised proposal and that it would take time for the case to mature for final
consideration after receipt of the revised proposal (to be) filed by the PPT, this Authority vide its Order dated
30 September, 2014 extended the validity of the existing SOR of the PPT from the date of its expiry till 31 December,4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
2014, subject to full adjustment of any additional surplus over and above the admissible cost and permissible return
accruing to the PPT post 1 April, 2013, in the tariff to be fixed for the next cycle. The PPT was also advised to file its
revised proposal at the earliest.
3.8. Thereafter, this Authority vide its Order dated 2 January, 2015 has extended the validity of the existing SOR of
the PPT till 31 March 2015, subject to full adjustment of any additional surplus over and above the admissible cost and
permissible return accruing to the PPT post 1 April, 2013, in the tariff to be fixed for the next cycle.
4. In the meantime, the Ministry of Shipping (MOS) vide its letter No. 8(1)/2014-TAMP dated 13 January, 2015
has issued the new “Policy for determination of Tariff for Major Port Trusts, 2015. This has been notified in the Gazette
of India vide Gazette No. 30 dated 27 January, 2015 by this Authority. The new “Policy for determination of Tariff for
Major Port Trusts, 2015” has come into effect from 13 January, 2015.
5.1. Given that this Authority is yet to receive the revised proposal from PPT and also since the new Tariff Policy,
2015 has come into effect, the PPT would have to formulate its revised proposal in accordance with the new Tariff Policy
of 2015 announced by the MOS. The proposal of PPT as and when received would have to be processed following the
new Tariff Policy, 2015.
5.2. In view of the above position this Authority decides to close the current proposal of PPT. The PPT is advised to
file its revised proposal based on the Tariff Policy, 2015. The revised proposal as and when received from PPT, would be
treated afresh.
T. S. BALASUBRAMANIAN, Member (Finance)
[ADVT III/4/Exty./143/2014 (325)]
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.