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Date: 2015-02-10 Category: Extra Ordinary State: Union Government Country: India

The Tariff Authority for Major Ports hereby extends the validity of the existing Scale of Rates of Vizag Seaport Private Limited as in the Order appended hereto.

Issued by Tariff Authority for Major Ports · NOT available

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Executive Summary & Key Takeaways

Executive Summary: The Tariff Authority for Major Ports extends the validity of the existing Scale of Rates (SOR) for Vizag Seaport Private Limited (VSPL) for vessels handled at berths EQ8 and EQ9. This extension is valid from the expiry date of the previous order until March 31, 2015, or until the implementation of revised rates, whichever occurs first. The extension excludes the rate for Harbour Mobile Crane, which is currently sub judice. Key Points / Main Content: * **Extension of Scale of Rates (SOR):** * The validity of VSPL's existing SOR is extended. * The extension is effective from the previous expiry date until March 31, 2015, or the implementation date of revised rates, whichever is earlier. * The rate for Harbour Mobile Crane remains sub judice and is excluded from this extension. * **Background:** * The previous SOR was approved on October 11, 2011, and notified on November 22, 2011, with validity until March 31, 2014. * VSPL challenged the October 11, 2011 order regarding the Harbour Mobile Crane tariff in the Andhra Pradesh High Court, which allowed VSPL to levy a pre-revised rate of Rs. 72.75 per tonne instead of the approved Rs. 36.70 per tonne until further orders. * The SOR validity has been extended on several occasions, with the last extension until December 31, 2014. * **Consultation and Review:** * A proposal from VSPL dated March 10, 2014, was discussed with relevant users and associations. * A joint hearing was held on October 7, 2014, as part of the consultative process. * Feedback and replies were requested from VSPL and Visakhapatnam Port Trust (VPT) on various queries. * VPT's response is still awaited, causing a delay in finalizing the case. * **Surplus Adjustment:** * Any surplus exceeding the admissible cost and permissible return after April 1, 2014, will be fully adjusted in the determined tariff during the performance review. Impact Analysis: * **Vizag Seaport Private Limited (VSPL)** * *Impact:* Continued operation under the existing SOR, excluding the Harbour Mobile Crane rate, until March 31, 2015, or revised rates are implemented. * *Action Required:* Await the final decision on revised rates and cooperate with the ongoing review process. * **Visakhapatnam Port Trust (VPT)** * *Impact:* Involved in the consultation process and required to provide feedback on the proposed changes. * *Action Required:* Expedite the submission of the remaining responses to the queries raised by the Tariff Authority to facilitate the finalization of the case. * **Users/User Associations:** * *Impact:* Tariffs for services provided by VSPL remain unchanged (except for Harbour Mobile Crane) until March 31, 2015, or until revised rates come into effect. * *Action Required:* Stay informed about the progress of tariff revisions and potential adjustments based on surplus calculations.

Key Entities Referenced

Tariff Authority for Major Ports: The regulatory body that issued the notification regarding the extension of the validity of the existing Scale of Rates for Vizag Seaport Private Limited. Major Port Trusts Act, 1963: The act under which the Tariff Authority for Major Ports derives its power to issue the notification. Vizag Seaport Private Limited: A private company operating at Visakhapatnam Port Trust, whose Scale of Rates is the subject of the notification. Visakhapatnam Port Trust: A port trust where Vizag Seaport Private Limited operates. T. S. Balasubramanian: Member Finance of Tariff Authority for Major Ports Chandra Bhan Singh: Member Economic of Tariff Authority for Major Ports Andhra Pradesh High Court: The High Court where Vizag Seaport Private Limited challenged an order related to tariff for Harbour Mobile Crane. Harbour Mobile Crane: Equipment for which a tariff dispute exists between Vizag Seaport Private Limited and the Tariff Authority for Major Ports.
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TARIFF AUTHORITY FOR MAJOR PORTS Case No. TAMP/5/2011-VSPL QUORUM : ( i) Shri T. S. Balasubramanian, Member (Finance) ( ii) Shri Chandra Bhan Singh, Member (Economic) ORDER (Passed on this 2nd day of January, 2015) This case relates to the extension of the validity of the existing Scale of Rates of the Vizag Seaport Private Limited (VSPL) for the vessels handled by it at berth EQ-8 and EQ-9 at the Visakhapatnam Port Trust (VPT). 2.1. The existing Scale of Rates (SOR) of VSPL was last approved by this Authority vide Order No.TAMP/5/2011- VSPL dated 11 October, 2011 which was notified in the Gazette of India on 22 November, 2011. The Order prescribed the validity of the SOR till 31 March, 2014. 2.2. The VSPL has challenged the said Order dated 11 October 2011 in the Hon'ble High Court of Andhra Pradesh to the extent of the tariff fixed for the Harbour Mobile Crane. The Hon'ble High Court has permitted the VSPL to levy the pre- revised rate of Rs. 72.75 per tonne instead of Rs. 36.70 per tonne approved by this Authority for the Harbour Mobile Crane until further orders.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 2.3. The validity of the existing SOR (except the validity for the rate of Harbour Mobile Crane which is subjudice), of the VSPL has been extended on couple of occasions; the last extension being till 31 December, 2014 vide Order dated 30 September, 2014. 3. The proposal filed by the VSPL vide its letter dated 10 March, 2014 has been taken on consultation with relevant users/user Associations. 4. Joint hearing, as part of the consultative process, was held on 7 October, 2014. As decided at the joint hearing, VSPL was requested vide our letter dated 16 October, 2014 to furnish its comments on the written submission made by the one of the users,VSAA at the joint hearing. Both the VSPL and VPT were also reminded vide our letter dated 16 October, 2014 to furnish their respective reply to the queries raised by us vide our letter dated 29 September, 2014. Reminders to VPT issued on 31 October, 2014 and 26 November, 2014. VSPL vide its letter dated 20 November, 2014 has furnished its reply. Since the VPT has furnished reply only on a few points vide its letter dated 17 December, 2014, the VPT has been requested vide our letter dated 16 January, 2015 to furnish its reply to the remaining points. The response of the VPT is awaited. Therefore, it will take some more time for finalizing the case. 5.1. The extended validity of the existing SOR of VSPL expired on 31 December, 2014. In view of the position brought out in para 4 above and recognising that it will take time for this case to mature for final consideration, this Authority extends the validity of the existing SOR, (except the validity for the rate of Harbour Mobile Crane which is subjudice), from the date of its expiry till 31 March, 2015 or till the effective date of implementation of the revised Scale of Rates, whichever is earlier. 5.2. If any surplus over and above the admissible cost and permissible return emerges for the period post 1 April, 2014, during the review of its performance, such additional surplus will be set off fully in the tariff to be determined. T. S. BALASUBRAMANIAN, Member (Finance) [ADVT. III/4/Exty./143/2014(293)] Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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