Home India Tariff Authority for Major Ports The Tariff Authority for Major Ports hereby extends the vali...
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 tariff for the services rendered by the Central Warehousing Corporation at the Container Freight Station in the Kandla Port Trust as in the Order appended hereto.

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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 services rendered by the Central Warehousing Corporation (CWC) at the Container Freight Station in Kandla Port Trust. This extension is granted until March 31, 2015, or the implementation date of the revised SOR, whichever occurs first, while CWC finalizes its proposal for tariff revision. The extension is based on the extraordinary situation at Kandla Port, specifically the absence of a Container Terminal Operator. Key Points / Main Content: Extension of Validity: * The validity of CWC's existing SOR is extended until March 31, 2015, or the effective date of a revised SOR, whichever is earlier. * This extension follows previous extensions granted via orders on April 4, 2014, and July 4, 2014. * The initial SOR validity was set to expire on March 31, 2014. Context of Extension: * The extension is due to the ongoing absence of a Container Terminal Operator at Kandla Port, leading to minimal container business at the CWC-CFS. * Kandla Port Trust is in the process of appointing a Container Terminal Operator, but finalization is expected to take several months. * CWC has requested until March 31, 2015, to file its proposal for SOR revision. CWC's Responsibilities: * CWC is advised to file a proposal for revision of its SOR. * CWC has been granted until March 31, 2015, to submit this proposal. Financial Implications: * Any additional surplus beyond admissible costs and permissible returns for the period after April 1, 2014, will be adjusted in the determined tariff during performance review. Impact Analysis: Central Warehousing Corporation (CWC): Impact: Benefits from the continued application of its existing SOR, ensuring uninterrupted revenue generation. The corporation is also obligated to file a proposal for the revision of its SOR. Action Required: Submit a proposal for the revision of its SOR by March 31, 2015. Kandla Port Trust: Impact: The extension addresses the operational challenges caused by the absence of a Container Terminal Operator, maintaining service provision at the Container Freight Station. Action Required: Continue the process of appointing a Container Terminal Operator. Tariff Authority for Major Ports (TAMP): Impact: TAMP is responsible for ensuring fair tariffs and is actively monitoring the situation at Kandla Port. Action Required: Review and approve CWC's revised SOR proposal upon submission, or by March 31, 2015.

Key Entities Referenced

Tariff Authority for Major Ports: An authority that extends the validity of the existing tariff for the services rendered by the Central Warehousing Corporation. Major Port Trusts Act, 1963: The act under which the Tariff Authority for Major Ports exercises its powers. Central Warehousing Corporation: An organization providing services at the Container Freight Station in the Kandla Port Trust, whose tariff validity is being extended. Container Freight Station: The location within the Kandla Port Trust where the Central Warehousing Corporation provides its services. Kandla Port Trust: A major port trust where the Container Freight Station is located and where the Central Warehousing Corporation provides services. Now known as Deendayal Port Trust, Gujarat. T.S. Balasubramanian: Member Finance of Tariff Authority for Major Ports. Chandra Bhan Singh: Member Economic of Tariff Authority for Major Ports. Gazette of India: Official government publication where the order regarding the Scale of Rates (SOR) of CWC was notified.
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inz ku djrk gAS 4-3- pfawd lhMCY;wlh d s ektS nw k njeku dh foLrkfjr o/Skrk 31 fnlEcj] 2014 dks lekIr gk s pdq h g S vkSj pfwad blds njeku ds l’a kk/sku d s fy, izLrko vHkh izkIr gkus k g]S blfy, ;g izkf/kdj.k lhMCY;wlh d s ektS nw k njeku dh o/Skrk dk s bldh lekfIr dh rkjh[k l s 31 ekp]Z 2015 rd vFkok l’a kkfs/kr njeku d s dk;kUZo;u dh iHzkkoh rkjh[k rd] tk s Hkh igy s gk]s foLrkfjr djrk gAS 5- ;fn Lohdk; Z ykxr vkSj Lohdk; Z ifzrykHk l s vf/kd dkbs Z vfrfjDr vf/k’k”sk 1 vizSy] 2014 d s ckn dh vof/k ds fy, idz V gksrk gS rk s bld s dk;Zfu”iknu dh leh{kk d s nkSjku] ,slk vfrfjDr vf/k’k”sk fu/kkfZjr fd, tku s oky s i’z kYq d e sa i.w kZr% lek;kfstr fd;k tk,xkA Vh-,l- ckyklcq gz e~ .;u] lnL; ¼foÙk½ [foKkiu III@4@vlk-@143@2014 ¼294½] TARIFF AUTHORITY FOR MAJOR PORTS NOTIFICATION Mumbai, the 4th February, 2015 No. TAMP/35/2010-CWC .—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 tariff for the services rendered by the Central Warehousing Corporation at the Container Freight Station in the Kandla Port Trust as in the Order appended hereto. TARIFF AUTHORITY FOR MAJOR PORTS Case No. TAMP/35/2010-CWC The Central Warehousing Corporation - - - Applicant 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 Central Warehousing Corporation (CWC) for the services rendered by it at the Container Freight Station in the Kandla Port Trust. 2. The existing Scale of Rates (SOR) of CWC was last approved by this Authority vide Order No. TAMP/35/2010- CWC dated 6 January, 2012 which was notified in the Gazette of India on 1 March, 2012. The Order prescribes the validity of the SOR till 31 March, 2014. This Authority has extended the validity of the existing SOR of the CWC initially till 30 June, 2014 vide Order dated 4 April, 2014. In view of the extraordinary situation then prevailing at the KPT, this Authority, for the reasons mentioned in the Order dated 4 July, 2014, has extended the validity of the existing SOR of the CWC till 31 December, 2014. 3. While extending the validity of its existing SOR vide Order dated 4 July, 2014, this Authority had advised the CWC to file its proposal for revision of its SOR. The CWC has not filed its proposal for revision its SOR so far. 4.1. The CWC, vide its letter dated 12 December, 2014, has stated that the position as intimated earlier vide its letter dated 12 February, 2014 and 16 June, 2014, still prevails i.e. presently there is no Container Terminal Operator at KPT¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 and hence no IMPEX vessel is reporting at KPT resulting virtually nil business at CWC-CFS at Kandla Port. Without any IMPEX container traffic at port, the tariff proposal will not be justifiable. The KPT has floated EOI for appointment of Container Terminal Operator which is under process. But the finalization of the same may take time possibly three- four months i.e. there will be no/very less container business at KPT/CWC-CFS Kandla Port during the said period/upto March, 2015. In view of that the CWC has requested time upto 31 March, 2015 to file its proposal. Simultaneously, it has also requested to allow to continue the existing tariff beyond 31 December, 2014 till revised tariff is approved by the Authority. 4.2. From the submissions of the CWC, there does not appear to be any change in the position relating to impex container traffic then prevailing at the KPT while extending the Scale of Rates of CWC and allowing it to file its proposal by 31 December, 2014 vide Order dated 4 April, 2014 and now. In view of the extraordinary situation prevailing at the KPT, as brought out by the CWC in its letter dated 12 December, 2014, this Authority grants time till 31 March, 2015 to CWC to file its proposal for revision of its SOR. 4.3. Since the extended validity of the existing SOR of the CWC has expired on 31 December, 2014 and as the proposal for revision of its SOR is still to be received, this Authority extends the validity of the existing SOR of the CWC from the date of its expiry till 31 March, 2015 or the effective date of implementation of the revised SOR, whichever is earlier. 5. If any additional 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/(294)] 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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