Date: 2015-05-25Category: Extra OrdinaryState: Union GovernmentCountry: India
The Tariff Authority for Major Ports hereby extends the validity of the existing composite rate for on-board labour in lieu of levy and other charges to Cargo Handling Division of Kandla Port Trust as in the Order appended hereto.
**Executive Summary:**
This notification issued by the Tariff Authority for Major Ports extends the validity of existing composite rates for onboard labor charges for the Cargo Handling Division (CHD) of Kandla Port Trust (KPT). This extension is effective from the date of expiry until September 30, 2015, or until revised rates are approved, whichever is earlier. KPT is advised to comply with the Tariff Policy, 2015 while applying the CHD levy and must file its proposal for revision of composite rates by June 30, 2015.
**Key Points / Main Content:**
* **Extension of Composite Rates:**
* The validity of existing composite rates for onboard labor charges for CHD at KPT is extended.
* The extension is from the date of expiry until September 30, 2015, or until the notification of revised rates, whichever occurs first.
* **Context and Justification:**
* The previous validity of the composite rates expired on March 31, 2015.
* KPT requested an extension while preparing a proposal for rate revision.
* The extension is granted considering KPT's ongoing preparation of the rate revision proposal and the time needed for its disposal.
* **Compliance and Policy:**
* KPT is advised to comply with Clause 8.4 of the Tariff Policy for Major Ports, 2015, regarding service-based charges and the prohibition of notional labor booking.
* KPT must adhere to the applicable Tariff Policy, 2015, and consider the Working Guidelines 2015.
* **Deadline for Rate Revision Proposal:**
* KPT must file its proposal for revision of composite rates for onboard labor charges for CHD by June 30, 2015.
**Impact Analysis**
**Kandla Port Trust (KPT):**
* *Impact:* KPT can continue to levy existing composite rates for onboard labor charges for CHD for a limited period. They must ensure compliance with the Tariff Policy, 2015.
* *Action Required:* KPT must file a proposal for revision of composite rates for onboard labor charges for CHD by June 30, 2015, adhering to the Tariff Policy, 2015, and considering the Working Guidelines 2015.
**Cargo Handling Division (CHD) of KPT:**
* *Impact:* Continued application of existing composite rates for onboard labor charges.
* *Action Required:* No direct action specified, but CHD operations will be affected by KPT's adherence to the Tariff Policy, 2015 and the rate revision proposal.
**Tariff Authority for Major Ports:**
* *Impact:* Oversees the tariff structure and ensures compliance with policy guidelines.
* *Action Required:* Review and approve the revised tariff proposal submitted by KPT.
Key Entities Referenced
Tariff Authority for Major Ports: The regulatory body responsible for setting tariffs for major ports in India.
Major Port Trusts Act, 1963: The Indian law that governs the administration of major ports.
Kandla Port Trust: A major port trust in India, specifically mentioned in the context of tariff revisions for its Cargo Handling Division.
Cargo Handling Division: A division of Kandla Port Trust, specifically related to levy and other charges to Cargo Handling Division of Kandla Port Trust.
Ministry of Shipping: The Indian government ministry responsible for ports and shipping, which issued the Tariff Policy for Major Ports, 2015.
Tariff Policy for Major Ports, 2015: A policy document issued by the Ministry of Shipping regarding tariff determination for major port trusts.
T.S. Balasubramanian: Member Finance of Tariff Authority for Major Ports
Chandra Bhan Singh: Member Economic of Tariff Authority for Major Ports
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[िव(cid:17)ापन-III/4/असा./143/2015(72)]
TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
Mumbai, the 18th May, 2015
No. TAMP/41/2012-KPT.—In exercise of the powers conferred by Section 48 of the Major Port Trusts Act,
1963 (38 of 1963), the Tariff Authority for Major Ports hereby extends the validity of the existing composite rate for on-
board labour in lieu of levy and other charges to Cargo Handling Division of Kandla Port Trust as in the Order appended
hereto.
Tariff Authority for Major Ports
Case No. TAMP/41/2012-KPT
Kandla Port Trust … Applicant
QUORUM
(i) Shri T.S. Balasubramanian, Member (Finance)
(ii) Shri Chandra Bhan Singh, Member (Economic)
O R D E R
(Passed on this 15th day of May 2015)
This case relates to extension of the validity of the composite per tonne rate for on-board labour in lieu of levy
and other charges of Cargo Handling Division (CHD) of Kandla Port Trust (KPT).
2.1. The composite rate for deployment of on-board labour of CHD at KPT was last revised by this Authority vide
Order No.TAMP/41/2012-KPT dated 13 August 2013. The validity of the composite rates for on-board labour charges of
CHD at KPT was prescribed till 31 March, 2015.
2.2. Subsequently, this Authority passed an Order No.TAMP/41/2012-KPT dated 4 August, 2014 amending the note
under Clause 3 of Chapter-III and the said amendment was made effective from the date the Order of 13 August, 2013
came into effect.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
3. Since the validity of the on-board labour charges for CHD was to expire on 31 March, 2015, the KPT vide its
letter dated 21 March, 2015 has sought extension of the validity of the existing composite rates for on-board labour
charges for CHD at the KPT. The KPT has also submitted that its proposal for revision rates for the said subject is under
preparation and will take some time for finalization.
4.1. Since the validity of the existing composite rate for on-board labour charges of CHD at the KPT has expired on
31 March 2015 and considering the position that the KPT is yet to submit its proposal which is under preparation and in
final stage as reported by the KPT and also taking into account the time that may be required to dispose of the proposal
after its receipt from the KPT, it is necessary to extend the validity of the existing composite rates for on-board labour
charges of CHD of KPT.
4.2. Clause 8.4 of the Tariff Policy for Major Ports, 2015 issued by the Ministry of Shipping (MOS) for tariff
determination of Major Port Trusts stipulates that the Major Ports shall charge only for services provided for them. It
further states that no notional booking of labour and other similar notional charges would be permitted. The KPT is,
therefore, advised to comply with the said Clause of Tariff Policy, 2015 while applying the CHD levy.
5. In the result, and for the reason given above, and based on a collective application of mind, this Authority
extends the validity of the existing composite rates for on-board labour charges of CHD of the KPT from the date of
expiry for a period of six months i.e. till 30 September, 2015 or date of effect of notification of the revised rates (to be)
approved by this Authority based on the tariff proposal to be filed by the KPT, whichever is earlier. The KPT is advised
to file its proposal for revision of composite rates for on-board labour charges rates for CHD latest by 30 June, 2015
following the applicable Tariff Policy, 2015 for Major Port Trusts, which is effective from 13 January, 2015 and also
taking into consideration of Working Guidelines 2015 to operationalise the Tariff Policy for Major Port Trusts, 2015
which will be notified in due course of time.
T.S BALASUBRAMANIAN, Member (Finance)
[ADVT. – III/4/Exty./143/2015 (72)]
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