Home India Tariff Authority for Major Ports The Traiff Authority for Major Ports hereby extends the vali...
Date: 2015-02-10 Category: Extra Ordinary State: Union Government Country: India

The Traiff Authority for Major Ports hereby extends the validity of the existing Scale of Rates of the Paradip Port Trust 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 notification from the Tariff Authority for Major Ports extends the validity of the existing Scale of Rates (SOR) for the Paradip Port Trust (PPT) until March 31, 2015, or the implementation date of revised rates, whichever is earlier. This extension is granted while awaiting a revised SOR proposal from PPT, which was initially due in 2012 and has been subject to reminders and extensions. The notification also addresses the handling of any additional surplus income accrued by PPT after April 1, 2013. **Key Points / Main Content:** * **Extension of Validity:** The existing Scale of Rates (SOR) of the Paradip Port Trust (PPT) is extended. * The extension is effective from the expiry date of the previous extension (December 31, 2014). * The new expiry date is March 31, 2015, or the implementation date of revised rates, whichever comes first. * **Revised SOR Proposal:** PPT is yet to file its revised SOR proposal. * PPT was initially requested to submit a revised proposal on August 27, 2012. * The authority has reminded PPT multiple times to submit the proposal, with deadlines that have passed. * PPT is advised to file its revised proposal following applicable tariff guidelines. * **Handling of Surplus Income:** Any additional surplus income earned by PPT after April 1, 2013, will be adjusted in the tariff fixed for the next cycle. **Impact Analysis** * **Paradip Port Trust (PPT)** * *Impact:* The existing tariff structure remains valid for an additional period, allowing continued operations. PPT must still submit the revised SOR proposal for long-term tariff adjustments. The port may need to adjust internal resources to account for damages sustained from the cyclone on October 12, 2013. Any surplus income accrued after April 1, 2013 may be adjusted in the upcoming tariff cycle. * *Action Required:* PPT must prioritize the submission of a revised SOR proposal following applicable tariff guidelines. * **Tariff Authority for Major Ports:** * *Impact:* The Authority continues to oversee and regulate tariff structures for major ports. * *Action Required:* The Authority will review the revised proposal from PPT once submitted and determine future tariffs. * **Port Users/Customers:** * *Impact:* The current extension means tariffs remain unchanged in the short-term, maintaining cost stability. * *Action Required:* Port users should monitor for updates regarding the implementation of revised tariffs following PPT's submission and the Authority's review.

Key Entities Referenced

Tariff Authority for Major Ports: The regulatory body responsible for setting and revising tariffs for major ports in India. Major Port Trusts Act, 1963: The Indian law that empowers the Tariff Authority for Major Ports to regulate tariffs. Paradip Port Trust: A major port in India, specifically mentioned in the document regarding extension of its existing Scale of Rates (SOR). Scale of Rates: The schedule of charges levied by the Paradip Port Trust for various services. T.S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports Chandra Bhan Singh: Member Economic of the Tariff Authority for Major Ports New Delhi: The city where the notification is published. Government of India: The governing body of India, which the Paradip Port Trust requested a grant from
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TARIFF AUTHORITY FOR MAJOR PORTS Case No. TAMP/62/2009-VPT 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 Order relates to the extension of the validity of the existing Scale of Rates of the Paradip Port Trust (PPT). 2. The existing Scale of Rates (SOR) of the PPT was last approved by this Authority vide Order No. TAMP/61/2009- PPT dated 25th March, 2011 which was notified in the Gazette of India on 23rd May, 2011. The Order prescribed the validity of the SOR till 31st March, 2013. This Authority has extended the validity of SOR of PPT on couple of occasions; the last extension being till 31st December, 2014 vide Order dated 30th September, 2014.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 3. The PPT has filed its proposal for revision of the existing SOR on 27 August 2012 which was registered as tariff case and taken on consultation. The proposal has been internally scrutinized and joint hearing in this case was held on 25 February 2013. 4.1 When the case was being firmed up for final consideration of this Authority, the PPT, vide its communication dated 30 October 2013, submitted that the financial year 2012-13 was already over and the actual figures for the 2012-13 are available which may have to be considered since the cargo mix estimated to be handled has undergone a change and the oil cargo has increased substantially. Moreover, due to severe cyclone on 12 October 2013, port has suffered damages to its properties which is estimated to be around Rs. 82.71 crores. The PPT has stated that if its request to Government of India for a grant to restore the damages caused is not considered, the PPT will have to meet the restoration cost from its internal resources which will affect its internal resources. 4.2. In view of the above position, the PPT had sought three months’ time to submit a revised proposal for general revision of its SOR. For the reasons stated by PPT, the port was allowed time till 31 January 2014 to file its revised proposal. Since the proposal was not received, the PPT was reminded to file its revised proposal vide our letter dated 17 February 2014. Correspondence were exchanged with PPT advising port to file its revised proposal. While extending the validity of the existing SOR till 30 September 2014, the PPT was again advised to file its revised proposal by 31 August 2014 under the applicable tariff guidelines of 2005. The revised proposal from PPT is still awaited. The PPT is, therefore, advised to file its revised proposal following applicable tariff guidelines. 5. In the meantime, the extended vasidity of the existing SOR of PPT expired on 31 December 2014. Recognising that the PPT is yet to file its revised proposal and it will time for the case to mature for final consideration after receipt of the revised proposal (to be) filled by the PPT, this Authority extends the validity of the existing SOR of the PPT from the date of its expiry till 31 March, 2015 or till the effecting date of implementation of the revised Scale of Rates, Whichever is earlier. 6. If any additional surplus over and above the admissible cost and permissible return accrues to the PPT post 1 April 2013, during the review of its performance, such additional surplus will be fully adjusted in the tariff to be fixed for the next cycle. T.S. BALASUBRAMANIAN, Member (Finance) [ADVT.- III/4/Exty./143/2014(291)] 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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