Date: 2015-02-10Category: Extra OrdinaryState: Union GovernmentCountry: India
The Traiff Authority for Major Ports hereby extends the validity of the existing Scale of Rates of the Visakhapatnam Port Trust as in the Order appended hereto.
**Executive Summary:**
The Tariff Authority for Major Ports extends the validity of the existing Scale of Rates (SOR) for Visakhapatnam Port Trust (VPT). This extension is valid until March 31, 2015, or until the implementation of the revised Scale of Rates, whichever occurs first. The decision considers proposals from VPT, including a revised proposal and a levy for capital dredging. Any surplus beyond admissible costs after April 1, 2013, will be adjusted in future tariffs.
**Key Points / Main Content:**
* **Extension of Validity:**
* The existing SOR of VPT is extended until March 31, 2015, or the effective date of the revised SOR, whichever is earlier.
* This extends the previous validity, which expired on December 31, 2014.
* **Revised Proposal and Consultations:**
* VPT submitted a revised SOR proposal, which was discussed with concerned users and associations.
* Additional information was requested from VPT.
* **Capital Dredging Levy:**
* VPT proposed a levy to recover the cost of capital dredging, seeking its inclusion in the SOR.
* This proposal was circulated to users and organizations for comments.
* **Surplus Adjustment:**
* Any surplus exceeding admissible costs and permissible returns after April 1, 2013, will be fully adjusted in the tariffs to be determined.
**Impact Analysis:**
**Visakhapatnam Port Trust (VPT):**
* Impact: The existing SOR remains valid, allowing continued operations under the current tariff structure. However, the implementation of a revised SOR is pending, which could affect revenue and operations.
* Action Required: Continue to work with the Tariff Authority for Major Ports to finalize and implement the revised SOR, including the proposed levy for capital dredging.
**Port Users and User Associations:**
* Impact: The existing SOR continues to apply in the short term. Proposed changes to the SOR, including the capital dredging levy, could affect costs.
* Action Required: Monitor the progress of the revised SOR and provide feedback to the Tariff Authority for Major Ports on proposed changes, especially regarding the capital dredging levy.
Key Entities Referenced
TARIFF AUTHORITY FOR MAJOR PORTS: The authority responsible for extending the validity of the existing Scale of Rates of the Visakhapatnam Port Trust.
Visakhapatnam Port Trust: A major port trust whose Scale of Rates is being extended.
Major Port Trusts Act, 1963: The legal act under which the Tariff Authority for Major Ports exercises its powers.
Scale of Rates: The rates for services provided by the Visakhapatnam Port Trust, the validity of which is being extended.
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: Location where the notification was published.
Mumbai, Maharashtra: Location where TARIFF AUTHORITY FOR MAJOR PORTS issued notification
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TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
Mumbai, the 4th February, 2015
No. TAMP/13/2009-VPT.— In exercise of the powers conferred under Sections 48, 49 and 50 of the Major Port
Trusts Act, 1963 (38 of 1963), the Traiff Authority for Major Ports hereby extends the validity of the existing Scale of Rates
of the Visakhapatnam Port Trust as in the Order appended hereto.
TARIFF AUTHORITY FOR MAJOR PORTS
Case No. TAMP/13/2009-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 Visakhapatnam Port Trust (VPT)`
2. The existing Scale of Rates (SOR) of the VPT was last approved by this Authority vide Order No. TAMP/13/2009-
VPT dates 18 February 2011 which was notified in the Gazette of India on 31st March 2011. The Order prescribed the validity
of the SOR till 31 March 2013. This Authority has extended the validity of existing SOR of VPT on couple of occasions; the
last extension being till 31 December 2014 vide Order dated 30 September 2014.
3.1. The Proposal filed by the VPT vide its letters dated 8 February 2013 along with its letter dated 22 March 2013 has
been taken on consultation with the concerned users/user associations. Joint hearing on the proposal was held on
20 September 2013. The additional information/clarification sought from the VPT vide our letter dated 8 August 2013 has
been furnished by the port on 19 November 2013.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
3.2. Subsequently, the VPT vide its letter dated 18 December 2013 had stated that in view of latest development of
signing of Concession Agreement with BOT operator, the traffic, income estimates and deficit estimates, in its proposal may
undergo a change. In view of the above position, brought out by the VPT, having an impact on its general revision proposal,
the VPT was advised vide our letter dated 31 December 2013 to update its proposal and submit it by 7 January 2014.
Thereafter at the request of VPT, it was allowed time upto 20 February 2014 to file its revised proposal.
3.3. The VPT subsequently, vide its letter dated 2 April 2014 citing that the financial year 2013-14 is over, sought time
up to 30 June 2014 to file its revised proposal updating the estimates of 2013-14 with actuals. In view of the submissions
made by the VPT, the port was granted time till 30 June 2014 to file its revised proposal.
3.4. The VPT, vide its letters dated 14 August 2014, 2 September 2014 and 3 September 2014, has filed its revised
proposal. The revised proposal of the VPT has been taken on consultation with concerned users on 4 September 2014 for
their comments by 23 September 2014.
3.5. Subsequently, the VPT vide its letter dated 10 December 2014 has submitted a proposal for introduction of a levy
to recover the cost of Capital Dredging and has requested for inclusion in its Scale of Rates. The said proposal has been
circulated to the users/user organisations seeking their comments.
3.6. The revised proposal filed by the VPT in August 2014 and September 2014 and its proposal of December 2014 for
levy of capital dredging involves fresh scrutiny and it will take some more time for the case to mature for final consideration.
4. In the meantime, the extended valsidity of the existing SOR of VPT expired on 31 December 2014. Considering the
present status of the proposal as brought out in para 3.4, 3.5 and 3.6. above, this Authority extends the vglidity of the
existing SOR of the VPT till 31 March 2015 or till the effective date of implementation of the revised Scale of Rates,
Whichever is earlier.
5. If any additional surplus over and above the admissible cost and permissible return emerges for the period post 1
April 2013, 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 (290)]
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.