Cover Story

Proposed Port Regulatory Authority Bill: One Step Backward

Recently the Ministry of Shipping, Government of India published draft Port Regulatory Authority Bill on its web site inviting comments from different stakeholders. The Bill proposes complete overhaul of the regulatory institutional mechanism of the port sector in the country. The Bill proposes regulatory structure for minor ports also, which are controlled, developed and operated by State Governments.

Surprisingly, it was neither discussed nor put before the Maritime State Development Council (MSDC), even though the main purpose of such institution was to coordinate efforts between State and Central Government for development of ports and shipping sector.

Draft Port Regulatory Authority Bill 2011 - Types of Ports to be covered under the Ambit of The Regulator

Unlike Major ports which are common user facilities, minor ports can be either common user or a captive facility. The Captive facilities though being used by an Industry are often developed under a separate company belonging to same promoter group and this arrangement may not be at arms' length distance. Spare capacity, if available, is used for handling cargo of third parties.