Home India Tariff Authority for Major Ports This Authority had passed an Order No TAMP 48 2020 DPT dated...
Date: 2021-06-11 Category: Extra Ordinary State: Union Government Country: India

This Authority had passed an Order No TAMP 48 2020 DPT dated 28 December 2020 approving the Reference tariff and Performance Standards based on the proposal received from the Deendayal Port Trust

Issued by Tariff Authority for Major Ports · Not Applicable

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## Policy Analysis Report: Amendment to Reference Tariff and Performance Standards for Deendayal Port Trust (DPT) Oil Jetty No. 09 & 10 **1. Executive Summary:** This report analyzes an amendment to the reference tariff and performance standards for the Deendayal Port Trust's (DPT) Oil Jetty No. 09 and 10, which handles liquid cargo at old Kandla under a Public-Private Partnership (PPP) mode. The core purpose of this amendment is to correct the base year used for annual indexation of tariff caps. The original base year of 1 January 2021 has been amended to 1 January 2020. This correction aligns the indexation with the period already considered in the Tariff Authority for Major Ports (TAMP)'s calculations for the 2020-2021 annual indexation factor. The key finding is that this is a technical correction to ensure accurate and consistent application of the approved reference tariff. **2. Introduction:** This report provides an analysis of an amendment to the reference tariff and performance standards for Deendayal Port Trust’s Oil Jetty No. 09 and 10, based solely on the provided policy text. The analysis aims to inform affected industry stakeholders about the specific changes introduced by this amendment. **3. Policy Overview:** * **Original Policy Being Amended:** The original policy is the Reference tariff and Performance Standards for Deendayal Port Trust (DPT) for fixation of reference tariff for its project Oil Jetty No.09 and 10 to handle liquid cargo at old Kandla under PPP mode, approved by TAMP Order No. TAMP482020DPT dated 28 December 2020 and notified vide Gazette No.39 dated 20 January 2021. * **Core Objective(s) (as inferred from the provided text):** To establish a reference tariff schedule and performance standards for the Oil Jetty No. 09 and 10 and to ensure the tariff caps are indexed to inflation in a clear and consistent manner. **4. Background and Rationale:** The amendment addresses an inconsistency in the base year used for the indexation of tariff caps. The DPT identified that the originally prescribed base year of 1 January 2021 was incorrect. This amendment corrects this error by changing the base year to 1 January 2020. The rationale for this correction is that the annual indexation factor already approved by the Tariff Authority for Major Ports (TAMP) for the year 2020-2021 was based on the Wholesale Price Index (WPI) data from January 2019 to December 2019, taking January 1, 2020 as base. Using 1 January 2021 as the base year would misalign the indexation calculation, potentially leading to inaccurate tariff adjustments. **5. Key Provisions / Changes:** The amendment focuses specifically on Schedule 6, General Note i, of the Reference tariff schedule. * **Specific Part of Original Policy Changed:** Schedule 6, General Note i, pertaining to the base year for indexation. * **New Rule/Provision:** The base year for calculating the variation in the Wholesale Price Index (WPI) used for annual indexation is changed from 1 January 2021 to 1 January 2020. The amended note reads: "i. The tariff caps will be indexed to inflation but only to an extent of 60 of the variation in Wholesale Price Index WPI occurring between 1 January 2020 and 1 January of the relevant year. Such automatic adjustment of tariff caps will be made every year and the adjusted tariff caps will come into force from 1 April of the relevant year to 31 March of the following year." * **Difference/Effect of Change:** The change ensures that the indexation calculation aligns with the WPI data already used to determine the annual indexation factor for the year 2020-2021. This change, while seemingly minor, promotes accuracy in tariff calculations and maintains the intended level of inflation-adjusted tariff caps. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this amendment include: * Deendayal Port Trust (DPT) * Operators of Oil Jetty No. 09 and 10. * Users of Oil Jetty No. 09 and 10 who handle liquid cargo, who will be subject to the reference tariff. * The Tariff Authority for Major Ports (TAMP). **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Deendayal Port Trust (DPT) is responsible for modifying the relevant General Note at Sl. No. i of Schedule 6 in the Reference tariff schedule for Oil Jetty No.09 and 10 and in the bid documents. The Tariff Authority for Major Ports (TAMP) approved the corrigendum. * **Timelines/Procedures:** The amendment is effective from the date of the notification. The DPT is advised to implement the changes promptly. The adjusted tariff caps come into force from 1 April of the relevant year to 31 March of the following year. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this amendment is to correct a technical error and ensure the accuracy and consistency of the tariff indexation process. This correction prevents potential discrepancies in tariff calculations and ensures that the tariff caps are appropriately adjusted for inflation as intended in the original policy. **9. Conclusion:** This report details an amendment to the reference tariff and performance standards for the Deendayal Port Trust's Oil Jetty No. 09 and 10. The amendment corrects the base year for indexation from 1 January 2021 to 1 January 2020. While a seemingly minor change, this adjustment is significant for ensuring that the tariff indexation process aligns with the approved methodology and maintains the intended economic impact of the reference tariff. The timely and correct implementation of this amendment is crucial for all affected stakeholders.

Key Entities Referenced

NEW DELHI: Capital of India, place of publication of the gazette notification. Tariff Authority for Major Ports: Regulatory authority that passed the order regarding tariff and performance standards. Mumbai, Maharashtra: City in Maharashtra, location where the Tariff Authority for Major Ports order was issued. T.S. Balasubramanian: Member Finance of the Tariff Authority for Major Ports. Sunil Kumar Singh: Member Economic of the Tariff Authority for Major Ports. Deendayal Port Trust: Port Trust that submitted the proposal for fixation of reference tariff. TAMP482020DPT: Order number related to the Reference tariff and Performance Standards passed by the Tariff Authority for Major Ports. Oil Jetty No.09: Project at Deendayal Port Trust for handling liquid cargo. Oil Jetty No.10: Project at Deendayal Port Trust for handling liquid cargo. Kandla, Gujarat: Location of the old Kandla port where the Oil Jetty projects are situated. Wholesale Price Index: Economic indicator used for tariff indexation. Dte. of Printing at Government of India Press, Ring Road, Mayapuri: Organization responsible for uploading the document. Delhi: City in India, location of the Controller of Publications.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-एम.एxचxx.G-अID.E-x1x2x0 62021-227544 CG-MH-E-12062021-227544 असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 229] नई ददल्ली, िुक्रतार, िून 11, 2021/ज्य ष्े ठ 21, 1943 No. 229] NEW DELHI, FRIDAY, JUNE 11, 2021/JYAISTHA 21, 1943 महापत्तन प्रिल्ु क प्राजधकरण मुंबई, 13 मई, 2021 गणपर्तू त (i). श्री टी.एस. बालसुब्रमजनयन, सदस्ट् य वजतत्त (ii). श्री सुनील कुमार ससह, सदस्ट्य वआर्तथक िजु िपत्र (मई 2021 के 13तें ददन पाररत) फा.स.ं टीएएमपी/48/2020-डीपीटी.— इस प्राजधकरण ने पुराने कांडला में तरल कागो के प्रहस्ट्तन के जलये पीपीपी मोड म ें तैल िेटी संख्या 9 और 10 की पररयोिना के संदभभ प्रिुल्क जनधाभरण के जलये दीनदयाल पत्तन न् यास वडीपीटी से प्राप्त प्रस्ट् तात के आधार पर संदभभ प्रिुल्क और जनष्पादन मानकों का अनुमोदन करते हुए 28 ददसम्बर, 2020 को आदिे संख्य ा टीएएमपी/48/2020- डीपीटी पाररत दकया था। इस प्राजधकरण द्वारा अनुमोददत संदभ भ प्रिुल्क अनुसूची और जनष्पादन मानक भारत के रािपत्र में 20 िनतरी, 2021 के रािपत्र संख्य ा 39 में अजधसूजचत हुआ था। 2. 20 िनतरी, 2021 की उक्त अजधसूचना के संदभभ में, डीपीटी ने 04 मई 2021 के ई-मेल द्वारा इस प्राजधकरण के 28 ददसम्बर, 2020 के आदिे संख् या टीएएमपी/48/2020-डीपीटी द्वारा अनुमोददत संदभभ प्रिुल्क अनसु ूची की अनुसूची 6 के क्रमांक वi में सूचकांकन के आधार तर्भ के बारे में संिोधन चाहा है, िो डीपीटी के अनुसार उक्त आदिे में जनधाभररत 1 िनतरी 2021 के स्ट्थान पर 1 िनतरी 2020 होना चाजहये। 3163 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 3.1. इस संबंध में यहााँ यह उल्लेख करना समीचीन होगा दक डीपीटी के प्रस्ट् तात के आधार पर इस प्राजधकरण द्वारा अनुमोददत संदभभ प्रिुल्क आदिे में तार्तर्क सूचकांकन कारक तर्भ 2020-21 तक लेखबि दकया गया था। इस प्राजधकरण द्वारा तर्भ 2020-21 के जलये, अथाभत 1 अप्रैल 2020 से 31 माचभ, 2021 तक, तार्तर्क सूचकांकन कारक जनकालने के जलये तर्भ 2020-21 के जलये घोजर्त तार्तर्क सूचकांकन कारक में 01 िनतरी 2019 व01 िनतरी 2018 से 31 ददसम्बर, 2018 के बीच औसत माजसक डब्लल्यूपीआई के आधार पर जनकाला गया और 01 िनतरी 2020 व01 िनतरी 2019 से 31 ददसम्बर, 2019 के बीच औसत माजसक डब्लल्यूपीआई के आधार पर जनकाला गया के बीच औसत माजसक डब्लल्यूपीआई में हुए पररततभनों को लेखबि दकया गया था। 3.2. उपरोक्त के मद्देनिर, इस प्राजधकरण द्वारा 28 ददसम्बर, 2020 के उक्त आदिे मे अनुमोददत संदभभ प्रिुल्क में सूचकांकन के आधार तर्भ को 1 िनतरी 2021 के स्ट्थान पर 1 िनतरी 2020 के रूप में संिोजधत दकया िाता ह।ै तद्नुसार, इस प्राजधकरण के 28 ददसम्बर, 2020 के आदिे संख् या टीएएमपी/48/2020-डीपीटी द्वारा अनुमोददत संदभभ प्रिुल्क अनुसूची की अनुसूची 6 – सामान्य रटप्पण - के क्रमांक वi की मौिूदा रटप्पणी को जनम्नानुसार पढा िाये: इस प्राजधकरण के 28 20 िनतरी 2021 की अजधसचू ना जनम्नानसु ार पढा िाय े ददसम्बर, 2020 के सख्ं या 39 म ेंयथा प्रकाजित आदिे सख्ं य ा टीएएमपी/48/2020- डीपीटी द्वारा अनमु ोददत दरमान के अनलु ग्नक – 1 का सदं भ भ अनसु चू ी 6–के (i).प्रिुल् क सीमाएं 1 िनतरी 2021 और प्रासंजगक तर्भ (i). प्रिुल् क सीमाएं 1 िनतरी 2020 और प्रासजं गक अतं गतभ क्रमाकं (i) के 1 िनतरी के बीच आने ताले थोक मूल् य सूचकांक तर्भ के 1 िनतरी के बीच आने ताले थोक मूल् य वडब्ल ल् यूपीआई में जभन् नता के 60 प्रजतित की सीमा सूचकांक वडब्ल ल् यूपीआई में जभन् नता के 60 प्रजतित की तक ही मुद्रास्ट् फीजत से सूचकांदकत की िाएंगी। प्रिुल् क सीमा तक ही मुद्रास्ट् फीजत से सूचकांदकत की िाएंगी। सीमाओं का ऐसा स्ट् तत: समायोिन प्र्‍ येक तर्भ दकया प्रिुल् क सीमाओं का ऐसा स्ट् तत: समायोिन प्र्‍ येक तर्भ िाएगा और समायोजित प्रिुल् क सीमाएं प्रासंजगक तर्भ दकया िाएगा और समायोजित प्रिुल् क सीमाएं के 1 अप्रैल से आगामी तर्भ के 31 माचभ तक लागू प्रासंजगक तर्भ के 1 अप्रैल से आगामी तर्भ के 31 माचभ होंगी। तक लागू होंगी। 3.3 डीपीटी को यह सलाह दी िाती है के ते पुराने कांडला में तरल कागो के प्रहस्ट्तन के जलये तैल िेटी संख्या 9 और 10 के संदभभ प्रिुल्क के 28 ददसम्बर, 2020 के आदिे संख्य ा टीएएमपी/48/2020-डीपीटी की संगत अनुसूची 6 – सामान्य रटप्पण - के क्रमांक वi में और बोली दस्ट्तातेिों में उपयुक्त आिोधन कर लें। टी.एस.बालसुब्रमजनयन, सदस्ट्य वजतत्त [जतज्ञापन-III/4/असा./90/2021-22] TARIFF AUTHORITY FOR MAJOR PORTS Mumbai, the 13th May, 2021 QUORUM (i). Shri. T.S. Balasubramanian, Member (Finance) (ii). Shri. Sunil Kumar Singh, Member (Economic)[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 CORRIGENDUM (Passed on this 13th day of May 2021) F. No. TAMP/48/2020-DPT.–This Authority had passed an Order No.TAMP/48/2020-DPT dated 28 December 2020, approving the Reference tariff and Performance Standards based on the proposal received from the Deendayal Port Trust (DPT) for fixation of reference tariff for its project Oil Jetty No.09 and 10 to handle liquid cargo at old Kandla under PPP mode. The Reference tariff schedule and Performance Standards approved by this Authority were notified vide Gazette No.39 dated 20 January 2021. 2. With reference to the said notification dated 20 January 2021, the DPT vide its email dated 4 May 2021 has sought amendment to the General Note at Sr.No.(i) of Schedule 6 of the Reference tariff schedule approved by this Authority vide Order TAMP/48/2020-DPT dated 28 December 2020 pertaining to the base year for indexation which as per DPT should be 1 January 2020 instead of 1 January 2021 prescribed therein. 3.1. In this regard it is relevant to state that, reference tariff Order approved by this Authority based on the proposal of the DPT captures annual indexation factor upto the year 2020-21. The annual indexation factor announced by this Authority for the year 2020-21 captures variation in the monthly WPI occurring between 01 January 2019 (derived based on average monthly WPI from January 2018 till December 2018) and 01 January 2020 (derived based on average monthly WPI from January 2019 till December 2019) for arriving at the annual indexation factor to be applied for the year 2020-21 i.e. from 1 April 2020 till 31 March 2021. 3.2. In view of the above, the base year for indexation in the reference tariff approved by this Authority in the said Order dated 28 December 2020 is corrected as 1 January 2020 instead of 1 January 2021. Accordingly, the existing Note No. (i) under Schedule 6 – General Note in the Reference tariff schedule approved by this Authority vide Order No.TAMP/48/2020-DPT dated 28 December 2020 is to be read as given below: Reference to the SOR As appeared in the Notification No.39 To be read as follows approved by this dated Authority attached as 20 January 2021 Annex- I to the Order No.TAMP/48/2020-DPT dated 28 December 2020 Note (i) under Schedule 6 (i). The tariff caps will be indexed to (i). The tariff caps will be indexed to inflation but only to an extent of 60% of inflation but only to an extent of 60% of the variation in Wholesale Price Index the variation in Wholesale Price Index (WPI) occurring between 1 January 2021 (WPI) occurring between 1 January 2020 and 1 January of the relevant year. Such and 1 January of the relevant year. Such automatic adjustment of tariff caps will be automatic adjustment of tariff caps will be made every year and the adjusted tariff made every year and the adjusted tariff caps will come into force from 1 April of caps will come into force from 1 April of the relevant year to 31 March of the the relevant year to 31 March of the following year. following year. 3.3. The DPT is advised to suitably modify the relevant General Note at Sl. No. (i) of Schedule 6 in the Reference tariff schedule for Oil Jetty No.09 & 10 to handle liquid cargo at old Kandla approved vide Order No.TAMP/48/2020- DPT dated 8 December 2020 and also in the bid documents. T.S. BALASUBRAMANIAN, Member (Finance) [ADVT.-III/4/Exty./90/2021-22] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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