Home India Tariff Authority for Major Ports The Tariff Authority for Major Ports hereby extends the vali...
Date: 2014-03-04 Category: Extra Ordinary State: Union Government Country: India

The Tariff Authority for Major Ports hereby extends the validity of the rate structure for Gandhidham Township Land of Kandla Port Trust (KPT) 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 rate structure for Gandhidham Township Land of Kandla Port Trust (KPT) for six months, up to June 30, 2014, or until revised rates are notified, whichever is earlier. This extension ensures continuous applicability of lease rentals while KPT's proposal for rate revision is under consideration. KPT must submit its proposal for revised rates within 30 days of the order's notification in the Gazette of India. **Key Points / Main Content:** * **Extension of Rate Structure Validity:** * The validity of the current rate structure for Gandhidham Township Land of KPT is extended. * The extension is effective from the expiry date of the existing lease rentals until June 30, 2014, or the notification date of revised lease rentals, whichever comes first. * **Lease Rental Adjustments:** * Lease rentals will continue to escalate annually at a rate of 2% during the extended validity period. * The extended lease rentals with the 2% annual escalation serve as a temporary measure. * **KPT's Responsibilities:** * KPT is required to submit a proposal for the revision of the rate structure for Gandhidham Township Land. * The proposal must be submitted within 30 days from the date of the order's notification in the Gazette of India. * The new lease rentals will have retrospective effect to align with land policy guidelines for rate revisions every five years. **Impact Analysis:** * **Kandla Port Trust (KPT):** * *Impact:* The extension ensures the continuity of revenue from Gandhidham Township Land lease rentals while KPT's rate revision proposal is finalized. The requirement to submit a proposal for revised rates within 30 days necessitates prompt action. * *Action Required:* KPT must submit its proposal for the revision of the Gandhidham Township Land rate structure within 30 days of the order's notification in the Gazette of India. * **Lessee of Gandhidham Township Land:** * *Impact:* The extension means that the current lease rental rates, with a 2% annual escalation, will continue to apply for an interim period. * *Action Required:* No immediate action is required, but lessees should be aware of the potential for revised lease rentals with retrospective effect once KPT's proposal is finalized.

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: An Indian law that governs the administration of major ports in India. Kandla Port Trust: A major port trust in India, also referred to as KPT. Gandhidham Township: A township area associated with the Kandla Port Trust in Gujarat, India. The notification concerns land within this township. Gujarat: State in India where Kandla Port Trust and Gandhidham Township are located. Land Policy Guidelines of 2010: A set of guidelines issued by the government of India that dictate land-related policies, specifically influencing rate structures for land use by port trusts. T. S. Balasubramanian: Member Finance, Tariff Authority for Major Ports C. B. Singh: Member Economic, Tariff Authority for Major Ports
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TARIFF AUTHORITY FOR MAJOR PORTS Case No. TAMP/20/2010 - KPT Kandla Port Trust (KPT) ... Applicant QUORUM ( i) Shri T. S. Balasubramanian, Member (Finance) ( ii) Shri C. B. Singh, Member (Economic) ORDER (Passed on this 21st day of February, 2014) The lease rentals for Gandhidham Township Land of Kandla Port Trust (KPT) were last revised by this Authority on 9 April 2012. The said Order was notified in the Gazette of India on 4 May 2012 vide Gazette No. 119. The lease rentals revised by this Authority were implementable with retrospective effect from 1 January 2009 and with a validity period of five years, i.e. upto 31 December 2013. 2. In this connection, the KPT has sought extension of the validity of the rate structure of Gandhidham Township land for a period up to 30 June 2014 on the ground that its proposal for revision of rates for Gandhidham Township land is under consideration and will take some time for finalization.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 3.1. Since the validity of the existing rate structure for Gandhidham Township Land of KPT has expired on 31 December 2013, it is necessary to extend the validity of the existing lease rentals beyond 31 December 2013. Considering the position that the KPT is yet to submit a proposal and taking into account the time that may be required to dispose. of the proposal to be received from KPT after following the consultation procedure prescribed, thereafter, it is felt appropriate to extend the validity of the rate structure for Gandhidham Township.Land of KPT for a period of six months upto 30 June 2014, as requested by the KPT. • 3.2. Further, the land policy guidelines of 2010 issued by the Government (based on which the rate structure for Gandhidham Township Land of KPT has been fixed in April 2012) stipulates that the lease rentals approved by this Authority shall be escalated by 2% per annum till they are revised by this Authority. The Order approved by this Authority in April 2012 also prescribes a specific condition in this regard. Since the existing Schedule of lease rent already prescribes annual escalation @ 2% in the lease rentals till such time the rates are revised by the Competent Authority and in line with the guidelines issued by the Government, the annual escalation @ 2% will continue to apply during the extended validity period of the rate structure for Gandhidham Township Land of KPT. 3.3. However, in this regard, it is relevant to mention here that the extension of the existing lease rentals with an annual escalation of 2% is only a provisional arrangement to avoid a vacuum in the current scenario. The lease rentals to be fixed for the Gandhidham township of KPT based on a proposal to be filed by the KPT in this regard will have retrospective effect, to comply with the stipulation contained in the land policy guidelines regarding revision of the base rate once in five years. 4. In the result, and for the reasons given above, and based on a collective application of mind, this Authority extends the validity of the existing rate structure for Gandhidham Township Land of KPT from the date of expiry of the existing lease rentals for period of six months or date of effect of notification of the revised lease rentals based on the tariff proposal to be filed by the KPT, whichever is earlier. The KPT is also advised to file its proposal for revision of rate structure for Gandhidham Township Land within 30 days from the date of notification of the Order in the Gazette of India, in line with the stipulations contained in the applicable Land Policy guidelines. T. S. BALASUBRAMANIAN, Member (Finance) [ADVT. III/4/Exty./143/13] - 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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