Jawaharlal Nehru Port Trust (JNPT) for general revision of its Scale of Rates on 01 June 2020 : Taiff Authority for Major Ports

Mumbai, the 23rd June, 2020

No. TAMP/52/2019-JNPT.—This Authority, in exercise of the powers conferred on it under Sections 48, 49 & 50 of the Major Port Trusts Act, 1963 (38 of 1963), had disposed of the proposal received from the Jawaharlal Nehru Port Trust (JNPT) for general revision of its Scale of Rates on 01 June 2020. However, considering the time involved for notifying the (Speaking) Order along with the Scale of Rates approved by this Authority, this Authority decided to notify only the revised Scale of Rates immediately. Accordingly, the Scale of Rates approved by this Authority on 01 June 2020 was notified in the Gazette of India on 18 June 2020 vide Gazette No. 216. It was stated in the said Notification that this Authority will notify the Speaking Order, in due course of time. Accordingly, this Authority hereby notifies the Speaking Order connected with disposal of the proposal of the JNPT for general revision of its Scale of Rates as in the Order appended hereto.

Jawaharlal Nehru Port Trust …                                                                                            Applicant

(i) Shri. T.S. Balasubramanian, Member (Finance)

(ii) Shri. Rajat Sachar, Member (Economic)

This case relates to the proposal received from Jawaharlal Nehru Port Trust (JNPT) vide its letter No. JNPT/Fin/TAMP/6078 dated 27 September 2019 for General Revision of its Scale of Rates.

2. The existing Scale of Rates (SOR) of the JNPT was last approved by this Authority vide Order No.TAMP/48/2016- JNPT dated 4 January 2017 which was notified in the Gazette of India on 24 January 2017 vide Gazette No. 29. The said Order had prescribed a tariff validity upto 31 March 2019. Thereafter, the validity of the SOR of all eleven Major Port Trusts including JNPT was extended from 1 April 2019 to 30 September 2019 or till the effective date of implementation of the revised SOR to be notified by this Authority, whichever is earlier.

3.1. All the Major Port Trusts were earlier governed by the Tariff Policy of 2015 for fixation of SOR for handling cargo, vessel and rendering miscellaneous services. Subsequently, the Ministry of Shipping (MOS), vide its letter No. IWT-II/28/2018-IWT dated 26 December 2018 has issued the new “Tariff Policy for determination of Tariff for Major Port Trusts, 2018” for determination of SOR which are due for revision in Major Port Trusts with effect from 1 April 2019 under Section 111 of the Major Port Trusts (MPT) Act 1963. In compliance with the direction issued by the Government of India, this Authority has notified the Tariff Policy Guidelines, 2018 in the Gazette of India vide Gazette No.17 dated 16 January 2019. The Tariff Policy, 2018 has come into effect from 26 December 2018.  The said Tariff Policy, 2018 was forwarded to all Major Port Trusts including JNPT vide our letter No. TAMP/79/2018-Misc. dated 25 January 2019. Thereafter, as per Clause 1.5 of the Tariff Policy, 2018, Working Guidelines to operationalize the Tariff Policy for Major Port Trusts, 2018 have also been notified in the Gazette of India on 30 January 2019 vide Gazette No.29.

3.2. A copy each of the Tariff Policy, 2018 and the Working Guidelines to operationalize the Tariff Policy for Major Port Trusts, 2018 was forwarded to all Major Port Trusts including JNPT to consider it while formulating the General Revision proposal vide our letter Nos .TAMP/79/2018-Misc. dated 25 January 2019 and 04 February 2019 respectively.

4.1      In this backdrop, the JNPT has filed its proposal dated 27 September 2019 for general revision of its Scale of Rates, following Tariff Policy 2018.

4.2. The JNPT has furnished computation of Annual Revenue Requirement (ARR) under Form 1 and Revenue estimation at the proposed Scale of Rates in Form 3. The ARR computation furnished by JNPT is tabulated below: