Home India Tariff Authority for Major Ports The Tariff Authority for Major Ports hereby notifies the Sca...
Date: 2014-11-14 Category: Extra Ordinary State: Union Government Country: India

The Tariff Authority for Major Ports hereby notifies the Scale of Rates disposing of the proposal received from Jawaharlal Nehru Port Trust (JNPT) for fixation of Mandatory User Charges (MUC) for their Logistic Data Bank Project to be set up at JNPT, 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: This document notifies the scale of rates for the Mandatory User Charges (MUC) for the Logistic Data Bank (LDB) project at Jawaharlal Nehru Port Trust (JNPT). It approves JNPT's proposal to levy MUC on containers from April 1, 2016, with rates increasing annually until 2019. The order specifies the charges, revenue sharing, and validity period, and also addresses the handling of surpluses/deficits arising from the LDB service. Key Points / Main Content: Mandatory User Charges (MUC) Approval: * Approves JNPT's proposal to levy a Mandatory User Charge (MUC) at JNPT Port Terminals. * MUC rates: ₹125 per container in 2016-17, ₹135 in 2017-18, and ₹145 in 2018-19. Implementation Details: * Applicable from April 1, 2016, at JNPT, NSICTPL, and GTIPL. * The charge applies to all containers except transshipment and coastal containers. * Rate increases by ₹10 per container annually in 2017-18 and 2018-19. Service Provision: * Users will have the ability to track container movement from ports to ICDs and end-users, subject to user charges. Financial Aspects: * Actual surplus/deficit from LDB service during 2015-16 to 2018-19 will be carried over to the next tariff cycle. * NSICTPL and GTIPL are not required to pay royalty revenue share to JNPT on MUC revenue. Validity and Further Actions: * Approved rates are valid until March 31, 2019, unless extended. * A detailed speaking order will be issued separately to JNPT, users, user organizations, and BOT operators. Impact Analysis: JNPT: * Impact: Authorized to levy MUC as specified, affecting revenue and service cost recovery. * Action Required: Implement the MUC, track revenue and expenses related to the LDB project, and await further instructions in the detailed speaking order. NSICTPL and GTIPL: * Impact: Required to collect MUC and remit revenue accordingly; no royalty revenue share payable to JNPT. * Action Required: Implement MUC collection from April 1, 2016, and adjust systems to track and manage MUC revenue separately. Port Users (Shippers, Consignees, etc.): * Impact: Additional charges for container handling; benefit from improved tracking and efficiency via the LDB. * Action Required: Account for MUC in budgeting and logistics planning; utilize LDB tracking services for improved visibility. Tariff Authority for Major Ports: * Impact: Has approved the JNPT proposal for MUC. * Action Required: Notify the detailed speaking order separately to relevant stakeholders.

Key Entities Referenced

Jawaharlal Nehru Port Trust JNPT: A major port trust in India, applicant in this case, seeking to fix Mandatory User Charges (MUC) for its Logistic Data Bank (LDB) project. Major Port Trusts Act, 1963: The legal framework under which the Tariff Authority for Major Ports (TAMP) exercises its powers. Tariff Authority for Major Ports: The authority responsible for notifying the scale of rates for major ports, in this case, regarding the Mandatory User Charges for JNPT's Logistic Data Bank project. Logistic Data Bank LDB: A project developed to integrate information across the supply chain to provide real-time information within a single window, aimed at improving container logistics. Mandatory User Charges MUC: The charges JNPT is seeking to fix for the use of its Logistic Data Bank project. DelhiMumbai Industrial Corridor: A project by the Government of India to develop an industrial corridor. DelhiMumbai Industrial Corridor Development Corporation DMICDC: A Special Purpose Vehicle (SPV) incorporated for program managing the development of the DelhiMumbai Industrial Corridor project. Nhava Sheva International Container Terminal Private Limited NSICTPL: Private terminal operator at JNPT
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dVa us j fMik s ¼N½ Vªd ipz kyd (vii) ,ubZlh dkiksZj’s ku u s Mh,evkbZlhMhlh dh vksj l s ,yMhch lsok d s fy, VSfjQ cuk;k gAS mudk izkjfaHkd o”kZ 2015&16 ekuk x;k gS ftle sa fu’kkuh ipz kyu fd;k tk,xk vkSj dfFkr o”k Z e sa dkbs Z iHzkkj yxku s dk izLrko ugh a gAS rRi’pkr ] ipz kyu d s nwlj s o”k Z vFkkZr 2016&17 e sa :i; s 125@& ifzr dVa us j yus s vkSj vxy s nk s o”kk sZa e sa :i; s 10@&izfr dVa us j dh nj l s c<k+u s dk izLrko gSA 2-3 t,s uihVh u s izLrko 2005 VSfjQ fn’kk&fun’sZ kk sa ds varxZr izLrqr fd;k gSA 3- fu/kkfZjr lykgdkjh ifzØ;k d s vuq:i] t,s uihVh ds fnukda 18 flrEcj] 2014 dh ,d ifzr Mh,evkbZlhMhlh ] t,s uihVh e sa ikzboVs VfeuZ y ipz kyd vFkkZr ugok ‘ksok varjk”ZVªh; dVa us j VfeuZ y izkbZoVs fyfeVMs ¼,u,lvkbZlhVhih,y½] xVs os VfeuZ y ¼bfaM;k½ ikzboZ Vs fyfeVMs ¼thVhvkbiZ h,y½] ugok ‘ksok bfaM;k xVs o s VfeuZ y izkbZoVs fyfeVMs ¼,u,lvkbZlhVhih,y½ d s lkFk&lkFk lca fa/kr i;z kDs Rkvk@sa i;z ksxdrk Z lxa Bu dk s mudh fVIif.k;ka izkIr dju s ds fy, vxfzs”kr dh xbAZ Mh,evkbZlhMhlh vkSj i;z kDs rkvk sa e sa l s ,d vFkkZr u’s kuy ,lkfsl,’ku vkWQ dVa us j ÝVs LV’s ku ¼,u,lh,Q,l½ u s viuh fVIif.k;k a izLrqr dh gSAa Mh,evkbZlhMhlh vkSj ,u,lh,Q,l u s t,s uihVh }kjk ,e;wlh yxku s dk leFkuZ fd;k gSA bu fVIif.k;k sa dk s ifzrifq”V tkudkjh d s :i e sa t,s uihVh dk s vxfzs”kr fd;k x;k A t,s uihVh u s ekey s d s vfaredj.k rd ‘k;s j/kkjdk sa }kjk mBk, x, enq n~ ksa ij viuh fVIi.kh izLrqr ugh a dh gSA 4- bl ekey s dh ,d l;a Dq r luq okb Z bl izkf/kdj.k ds dk;kyZ ; esa 20 vDrcw j] 2014 dks gbq AZ ,ubZlh VSDukWykth u s t,s uihVh dh vkSj l s t,s uihVh d s izLrko dh lfa{kIr ikoj IokbVZa izLrfqr nhA l;a Dq r luq okb Z esa i;z kDs rkvk sa vkSj i;z kDs r lxa Bu fudk;k sa u s izLrfqr nh vkSj t,s uihVh }kjk ,e;wlh yxku s dk leFkuZ fd;kA 5-1 t,s uihVh }kjk o”k Z 2015&16 l s 2018&19 rd izLrqr ykxr vueq kuk sa dh 2005 VSfjQ fn’kk&fun’sZ kk sa e sa fufgr vucq /akk sa dk s /;ku e sa j[kr s g,q tkpa dh xbAZ t,s uihVh }kjk o”k Z 2015&16 l s 2018&19 d s fy, izLrqr ykxr vueq ku fofHkUu /kkj.kkvk sa ij vk/kkfjr fn[kkb Z nsrk gSA t,s uihVh u s ykxr vueq ku e sa blds }kjk dh xbZ /kkj.kkvksa esa l s vf/kdka’k d s fy, dkbs Z vk/kkj izLrqr ugh a fd;k gSA t,s uihVh }kjk dh xb Z fofHkUu /kkj.kk, a bl ij fuHkZj gS fd t,s uihVh izLrko dk bld s U;klh eaMy u s leFkuZ fd;k gSA 5-2 iRru }kjk ;Fkk izLrqr VSfjQ i{z kis .kk sa ij fo’okl fd;k x;k gSA 2005 VSfjQ fn’kk&fun’sZ k dh /kkjk 2-5-1 esa fufgr vucq /akksa d s vu:q i] t,s uihVh }kjk viuk, x, 10% l s 50% d s fofHkUu of`) ?kVdks a d s LFkku ij foRrh; o”k Z 2014&15 e sa fuf.kZr ekeyk sa d s lca /ak e sa [kpks aZ d s iwokuZ eq ku d s i;z kts u d s fy, bl izkf/kdj.k }kjk vxa hd`r of`) ?kVd tk s 6% dk of`) ?kVd gS ] dk s viukdj t,s uihVh }kjk vueq kfur ipz kyu ykxr dk s l;a fer fd;k x;k gAS t,s uihVh u s gkykfad fu;kfstr itwa h ij dkbs Z olyw h ugh a pkgh gS] dk;’Z khy itwa h ?kVd ¼,d ekg d s vueq kfur ipz kyu O;; ij xf.kr uxnh ‘k”sk dks lekfo”V djds½ s ij olyw h vueq r dh xb Z gSA¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 5-3 ipz kyu tkpa d s izkjfaHkd o”k Z vFkkZr 2015&16 e sa pwfad dkbs Z iHzkkj yxkuk izLrkfor ugh a gS] ;g udkjk ugh a tk ldrk fd o”k Z 2015&16 e sa ipz kyu dju s d s fy, ipz kyu ykxr [kp Z dh tk,xh vkSj blhfy, bl vof/k e sa Hkh [kp Z dh ipz kyu ykxr dh olyw h vueq r djuk mfpr gkxs kA mijkDs r fLFkfr d s vk/kkj ij t,s uihVh }kjk o”k Z 2015&16 ls 2018&19 rd izLrqr ykxr vueq kuk sa dks l;a fer fd;k x;k gSA 5-4 o”k Z 2015&16 l s 2018&19 dh vkSlr ykxr fLFkfr n’kkZrh gS fd o”kZ 2016&17 e sa :Ik; s 135@& ifzr dVa us j vkSj o”k Z 2018&19 e sa :Ik; s 145@& ifzr dVa us j dk izLrkfor mnx~ gz .k yxkus d s ckn Hkh lsok ?kkV s esa gkxs hA 5-5 t,s uihVh dk ;g izLrko gS fd ,e;wlh d s mnx~ gz .k l s lsok l s lca fa/kr iwj s ?kkV s dk s lekfo”V ugh a fd;k tk,A vr% iRru d s iLz rko d s vk/kkj ij vkSj ;g ekur s g,q fd i;z kDs Rkkvk sa u s Hkh ,e;wlh d s izLrkfor mnx~ gz .k dk leFkuZ fd;k gS] ;g izkf/kdj.k o”kZ 2016&17 e sa :i; s 125@& ifzr dVa us j] o”k Z 2017&18 e sa :i; s 135@& ifzr dVa us j vkSj o”k Z 2018&19 e as :i; s 145@& ifzr dVa us j d s ,e;wlh d s mnx~ gz .k grs q t,s uihVh d s izLrko dk s vueq kfsnr dju s d s fy, izoR`r gSA 6-1 ifj.kke e sa vkSj Åij fn, x, dkj.kk sa l s vkSj lkefwgd fopkj&eFa ku d s vk/kkj ij ;g izkf/kdj.k fuEufyf[kr dk vueq kns u djrk gS% (i) t,s uihVh iRru VfeuZ yk sa ij o”k Z 2016&17 e sa :i; s 125@& ifzr dVa us j] o”k Z 2017&18 e sa :i; s 135@& ifzr dVa us j vkSj o”k Z 2018&19 e sa :Ik; s 145@& ifzr dVa us j d s vfuok; Z i;z kDs r iHzkkj ¼,e;wlh½ yxkku s dk t,s uihVh dk izLrkoA (ii) t,s uihVh] ,u,lvkbZlhVhih,y vkSj thVhvkbiZ h,y dh lca fa/kr eku njk sa e sa fuEufyf[kr tkMs u+ k %& 01 vizSy] 2016 ls vfuok; Z i;z kDs rk iHzkkj ¼,e;wlh½ d s fy, lca fa/kr VfeuZ y ij lpa kfyr lHkh dVa us jksa ¼iksrkra j.k vkSj rVh; d s vykok½ :i; s 125@& ifzr dVa us j dh jkf’k yxkb Z tk,xhA rRi’pkr]~ bl s o”kZ 2017&18 vkSj 2018&19 e sa Øe’k :i; s 10@& ifzr dVa us j ifzro”k Z c<+k;k tk,xkA (iii) iRru l s vkbZlhMh vkSj vfare i;z ksDrk d s chp dVa us jk sa d s lpa kyu ij utj j[kuk vkSj n[s kuk A i;z kDs rk dh i;z kDs rk iHzkkj ds Hkqxrku ij vueq r fd;k tk,xkA (iv) o”k Z 2015&16 l s 2018&19 dh vof/k e sa ,e;wlh d s mn~xgz .k }kjk ,yMhch dh lsok l s mit s okLrfod vf/k’k”sk@?kkV s dk s 2005 fn’kk&fun’sZ k dh /kkjk 2-13 e sa fufgr vucq /ak d s vu:q i lOa;ogkfjr ugh a fd;k tk,xk ijra q vxy s VSfjQ pØ e sa vxuzs hr fd;k tk,xkA (v) ,u,lvkbZlhVhih,y vkSj thVhvkbiZ h,y }kjk ,e;wlh d s mnx~ gz .k ds :i e sa mud s }kjk lxa fzgr jktLo ij t,s uihVh dk s dkbs Z LoRo&’kYq d@jktLo v’a k n;s ugh a gkxs kA 6-2 vueq kfsnr njk sa dh oS|rk] tc rd fof’k”V :Ik l s izkf/kdj.k }kjk c<+kb Z ugh a tkrh] 31 ekp Z 2019 dk s Lor% lekIr gk s tk,xhA 7- 2005 fn’kk&fun’sZ k dh /kkjk 3-2-7 vU; ckrk sa d s lkFk&lkFk vucq fa/kr djrh gS fd ;g izkf/kdj.k ldkj.k vkn’s k ikfjr djxs kA fdra ]q ljdkj }kjk O;Dr vR;ko’;drk dk s /;ku e sa j[kr s g,q ;g izkf/kdj.k foLr`r ldkj.k vkn’s k dh vf/klpw uk dh izrh{kk fd, fcuk igy s eku njk sa dk s vf/klfwpr dju s d s fy, izoR`r gSA vr% ;g izkf/kdj.k foLr`r ldkj.k vkn’s k vyx l s vf/klfwpr djxs k vkSj t,s uihVh rFkk lxa r i;z kDs rkvk@sa i;z kDs rk laxBu vkSj chvkVs h ipz kydk sa dk s mfpr le; e sa lia zsf”kr djxs kA Vh-,l- ckyklcq gz e~ f.k;u] lnL; ¼foRr½ [foKkiu&III@4@vlk-@143@2014] TARIFF AUTHORITY FOR MAJOR PORTS NOTIFICATION Mumbai, the 3rd November, 2014 No. TAMP/49/2014-JNPT. —In exercise of the powers conferred under Section 48 of the Major Port Trusts Act, 1963 (38 of 1963), the Tariff Authority for Major Ports hereby notifies the Scale of Rates disposing of the proposal received from Jawaharlal Nehru Port Trust (JNPT) for fixation of Mandatory User Charges (MUC) for their Logistic Data Bank Project to be set up at JNPT, as in the Order appended hereto.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] Tariff Authority for Major Ports Case No. TAMP/49/2014-JNPT Jawaharlal Nehru Port Trust - - - Applicant QUORUM (i). Shri. T.S. Balasubramanian, Member (Finance) (ii). Shri. Chandra Bhan Singh, Member (Economic) ORDER (Passed on this 29th day of October, 2014) This case relates to the proposal received from Jawaharlal Nehru Port Trust (JNPT) for fixation of Mandatory User Charges (MUC) for their logistic Data Bank Project to be set up at JNPT. 2.1. The Jawaharlal Nehru Port Trust (JNPT) vide its letter dated 18 September, 2014 has filed a proposal for fixation of Mandatory User Charges (MUC) for their logistic Data Bank Project to be set up at JNPT. 2.2. The salient features of the JNPT proposal are as follows: (i) The Government of India is developing the Delhi-Mumbai Industrial Corridor as a global manufacturing and investment destination. For this purpose, a Special Purpose Vehicle (SPV) named the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) has been incorporated for program managing the development of the DMIC project. (ii) All the stakeholders involved in the cargo movement have their own standalone information System to manage their operations. Since these systems are not integrated with each other, they do not exchange information on real time basis, and it is felt difficult to keep a track on the movement of containers across the ports to the ICDs and the end users. (iii) To address this issue, the concept of Logistics Data Bank (LDB) has been developed to integrate the information available with various agencies across the supply chain to provide detailed real time information within a single window. (iv) The project is to provide the near real time visibility of the container movement across the supply chain, thereby streamlining the container logistic movement and tremendously increase the efficiency and competitiveness of the containerised cargo movement, which will ultimately boost the EXIM trade. (v) The project will be taken up by a Special Purpose Vehicle (SPV) that will be 50:50 joint venture between Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) and NEC Corporation, Japan. (vi) The following stakeholders will be benefited out of the LDB Project: (a) Government (b) Shippers / Consignee (c) Shipping Line (d) Port Terminal Operator (e) Container Train Operator (f) Inland Container Depot (g) Truck Operator (vii) NEC Corporation on behalf of DMICDC, have formulated tariff for LDB service. Their initial operational year has been considered as 2015-16, wherein trial operations would be carried out and no charges are proposed to be levied during the said year. Thereafter, it has been proposed to charge¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5 ` 125/- per container in the second year of operation, i.e. 2016-17 and increase the rate by `10/- per container in the next two years. 2.3. The proposal has been submitted by JNPT under 2005 tariff guidelines. 3. In accordance with the consultative procedure prescribed, a copy of the JNPT proposal dated 18 September, 2014 was forwarded to the DMICDC, private terminal operators at JNPT viz., Nhava Sheva International Container Terminal Private Limited (NSICTPL), Gateway Terminal India Private Limited (GTIPL), Nhava Sheva (India) Gateway Terminal Private Limited (NSIGTPL) as well as to the concerned users/ user organisations seeking their comments. The DMICDC as well as one of user viz., National Association of Container Freight Stations (NACFS) have furnished their comments. The DMICDC as well as the NACFS have endorsed the levy of MUC by JNPT. These comments were forwarded to JNPT as feedback information. The JNPT has not furnished its comments on the points made by the stakeholders till the finalization of the case. 4. A joint hearing in this case was held on 20 October, 2014 at the Office of this Authority. The NEC Technologies, on behalf of JNPT, made a brief power point presentation of JNPT proposal. At the joint hearing, the users and user organisation bodies have made submissions and have endorsed the levy of MUC by JNPT. 5.1. The cost estimations furnished by the JNPT for the years 2015-16 to 2018-19 have been scrutinized, keeping in view the stipulations contained in the 2005 tariff guidelines. The cost estimations furnished by the JNPT for the years 2015-16 to 2018-19 are seen to be based on various assumptions. No basis has been furnished by the JNPT for majority of the assumptions made by it in the estimation of cost. The various assumptions made by the JNPT are relied upon, given that the JNPT proposal has been endorsed by its Board of Trustees. 5.2. The traffic projections as furnished by the port have been relied upon. In line with the stipulation contained in Clause 2.5.1. of the 2005 tariff guidelines, the operating costs estimated by the JNPT have been moderated by adopting an escalation factor of 6%, being the escalation factor adopted by this Authority for the purpose of projection of expenses in respect of the cases to be decided during the financial year 2014-15, instead of the various escalation factors ranging from 10% to 50% adopted by the JNPT. Though no Return on Capital Employed has been sought by the JNPT, Return on the Working Capital component (comprising of cash balance calculated at one month estimated operating expenses) has been allowed. 5.3. Though no charges are proposed to be levied in the initial year of trial operation i.e. 2015-16, it cannot be denied that operating costs would be incurred to carry out the operations in the year 2015-16 and therefore it may be appropriate to allow recovery of the operating costs incurred during this period also. Based on the above position, the cost estimations furnished by the JNPT for the years 2015-16 to 2018-19 have been moderated. 5.4. The moderated average cost position for the years 2015-16 to 2018-19 shows that the service would be in deficit, even after the proposed levy of ` 125/- per container is levied in the year 2016-17, ` 135/- per container is levied in the year 2017-18 and ` 145/- per container is levied in the year 2018-19. 5.5. It is the proposal of the JNPT to not cover the entire deficit pertaining to the service from the levy of the MUC. Therefore, based on the proposal of the port and given that the users have also endorsed the proposed levy of MUC, this Authority is inclined to approve the proposal of the JNPT for levy of MUC of ` 125/- per container in the year 2016-17, ` 135/- per container in the year 2017-18 and ` 145/- per container in the year 2018-19. 6.1. In the result, and for the reasons given above, and based on a collective application of mind, this Authority approves the following: (i). The proposal of the JNPT to levy the Mandatory User Charge (MUC) of ` 125/- per container in the year 2016-17, ` 135/- per container in the year 2017-18 and ` 145/- per container in the year 2018-19 at the JNPT Port Terminals (ii). Insertion of the following in the respective Scale of Rates of JNPT, NSICTPL and GTIPL: “An amount of `125/- per container will be levied on all containers (except transhipment and coastal) handled at the respective terminal towards Mandatory User Charge (MUC) with effect from 01 April 2016. Thereafter, it will be increased by `10/- per container per annum during the years 2017-18 and 2018-19 respectively.” (iii). Tracking and viewing the movement of containers across the ports to the ICDs and end users would be provided to the users against the payment of user charges.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] (iv). The actual surplus/ deficit arising out of the service of LDB by levy of MUC during the period from 2015-16 to 2018-19 will not be dealt in line with the stipulation contained in Clause 2.13 of the 2005 guidelines, but will be carried over to the next tariff cycle. (v). No royalty/ revenue share is payable by the NSICTPL and GTIPL to JNPT, on the revenue collected by them by way of levy of MUC. 6.2. The validity of the approved rate will automatically expire on 31 March 2019, unless specifically extended by the Authority. 7. Clause 3.2.7 of the 2005 guidelines, inter alia, stipulates that this Authority will pass speaking orders. However, in view of the urgency expressed by the Government, this Authority is inclined to notify the Scale of Rates first, without waiting for notification of the detailed speaking Order. Therefore, this Authority notifies the Scale of Rates immediately. The detailed speaking Order will be notified by this Authority separately and communicated to the JNPT and the relevant users/ user organisations and BOT operators in due course of time T.S. BALASUBRAMANIAN, Member (Finance) [ADVT.III/4/Exty./143/2014] 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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